Avi  ry  Arc  hitectural  and  Fine  Arts  Library 
Gift  of  Seymour  b.  Dursi  Old  York  Liurary 


Ex  Safaris 


SEYMOUR  DURST 


When  you  leave,  please  leave  this  hook 

Because  it  has  been  said 
"Ever'thing  comes  t'  him  who  waits 

Except  a  loaned  book." 

-  i  


I 


Explaining  the  daily  operations  in  Stocks, 
Bonds  and  Gold. 


John  Hickling  &  Co., 

and  §r<jfem, 

72  BROADWAY  and  11  NEW  STREET, 

Opp.  Stock  and  Gold  Exchanges.  NEW  YORK, 


Entered  according  to  act  of  CongiesB,  in  the  year  1875,  by  John  Hiokung,  in  the 
office  of  the  Librarian  ol  Congress,  Washington. 


TS5 

I 


PART  FIRST- 


flltaU  J>ttwt  a  Jinannal  (ttenttt—  Wail  street  dates 

'f^Pback  to  the  year  1653,  when  New  York  was  called 
New  Amsterdam.  It  was  then  one  of  the  landmarks 
of  the  early  Dutch,  and  was  a  sort  of  stronghold  or 
protector  against  the  cupidity  of  the  Indian.  Now 
it  is  a  depository  of  treasure — a  reservoir  into  which 
flows  a  thousand  streams  of  capital  from  all  parts  ot 
the  country.  The  mention  of  the  name  Wall  Street 
conjures  up  ideas  of  richly  filled  vaults,  of  corniced 
columns  of  granite  and  marble,  enclosing  innumerable 
"  Caves  of  Monte  Christo." 

Nothing  the  imagination  can  picture,  how-ever, 
will  realize  the  characteristics  of  this  world-renowned 
locality.  The  annals  of  Wall  Street  are  replete  with 
the  most  stirring  events,  far  transcending  the  realms 
of  fiction.  It  was  once  a  mart  for  slaves ;  it  is  now 
the  financial  centre  of  the  United  States. 

If  $tW  %0V^  ^0t^  ®Xrbatt0C  is  a  new  and  sPa" 
'^fcious  building,  devoted  to  the  sale  of  railroad 

stocks,  bonds  and  other  securities.  It  has  a  member- 
ship of  over  i,ioo  names,  and  eclipses  all  other  stock 
organizations  in  the  world.  The  Custom  House, 
Treasury,  private  and  national  banks,  and  other 
moneyed  institutions  being  in  the  immediate  vicin- 
ity, form  a  perfect  nucleus  of  wealth. 


4 

hf  53rohfr8. — The  hours  in  which  the  Bulls  and 

Bears  transact  business  are  from  10  A.  M.  till  3 
P.  M.,  and  any  one  wishing  to  view  those  animals  in 
their  daily  pastimes  can  do  so  by  entering  the  visit- 
ors' gallery.  The  aggregate  amount  of  business 
which  passes  through  their  hands  exceeds  fifty  mill- 
ions a  day.  As  fast  as  sales  are  made  they  are  tele- 
graphed all  over  the  city,  and  thence  to  all  parts  of 
the  country,  so  that  a  person  thousands  of  miles 
awav  from  New  York  can  take  advantage  of  the 
fluctuations  of  the  market,  and  have  facilities  for 
operating  from  day  to  day,  the  same  as  a  resident  of 
New  York. 

|j^0tfa  tgXtn  in  Wall  Street —The  millionaires  of 
c:i^  Wall  Street,  in  most  instances,  were  once  penni- 
less. Daniel  Drew,  one  of  the  great  Bear  leaders, 
was  known  in  early  life  as  a  simple  drover,  but,  by 
bold  and  skilful  manipulation,  he  has  long  been  a 
rich  and  powerful  speculator.  Cornelius  Vanderbilt, 
the  famous  railroad  king,  whose  early  youth  was 
spent  in  the  healthful  occupation  of  sculling  a  small 
ferryboat  off  the  shore  of  Staten  Island,  has,  to-day, 
no  peer.  A  consistent  Bull,  he  is  the  most  success- 
ful and  powerful  operator  of  the  present  day.  The 
career  of  these  two  noted  men  of  Wall  street  will 
illustrate  the  fact,  that  perseverance  and  tact  will 
overcome  all  obstacles  in  the  way  of  acquiring  wealth. 
The  name  of  Jay  Gould  only  needs  to  be  mentioned 
to  prove  that  nothing  is  impossible  in  Wall  street. 
He  is  a  living  example  of  the  saying  "  where  there's 
a  will  there's  a  way,"  and  his  late  confrere,  Fisk,  was 


5 


even  a  more  remarkable  example  of  this  power  of 
will  and  brains. 

/jfltqUf  $  and  WOOU. — A  Clique  is  a  combination  of 
^-r prominent  operators,  or  their  brokers,  to  carry  a 
stock  up,  each  bidding  higher  and  higher  so  as  to  get 
control  of  it. 

A  Pool  differs  so  far  from  a  Clique  as  that  a  number 
of  men  put  up  an  amount  of  money  into  the  hands  of 
one  of  their  number,  who  takes  full  charge  and  con- 
trol of  the  operation  for  their  joint  account.  None 
of  the  others  can  inquire  as  to  the  use  made  of  the 
money  or  how  the  affair  is  managed.  When  the 
transaction  is  closed  a  division  is  made  pro  rata.  The 
late  Henry  Keep  was  a  noted  Pool  man,  and  was 
always  implicitly  trusted. 

The  Nabobs  of  Wall  street  are  continually  forming 
new  enterprises.  They  tighten  money,  lock  up  gold, 
and  raise  or  depress  the  price  of  stocks  at  will;  indeed, 
their  influence  is  felt  in  every  financial  community. 
Often  a  Bull  and  a  Bear  Clique  will  form  at  the 
same  time,  the  one  in  opposition  to  the  other.  It  is 
the  mystic  workings  of  the  cliques  which  produce 
the  constant  fluctuations  in  the  market,  when  stocks 
change  hands  very  rapidly,  and  fortunes  are  won  and 
lost  in  an  hour.  The  memorable  gold  panic  of  24th 
September,  1869,  known  as  Black  Friday,  will  ever 
be  remembered  in  connection  with  James  Fisk,  Jr. 
On  that  day  the  sales  of  gold  reached  over  five  hun 
dred  millions. 


6 

pifUlfttiOlt. — The  great  feature  of  Wall  street,  as 
in  every  important  centre  of  commerce,  is  specu- 
lation. The  love  of  gain  is  an  inherent  principal  in 
human  nature,  and,  to  a  large  extent,  the  foundation 
of  all  enterprise.  The  desire  to  make  money  is  the 
main-spring  of  speculation.  The  inventor  theorizes — 
speculates  before  bringing  his  art  to  perfection. 
The  importer  goes  to  Europe  and  uses  his  know- 
ledge in  speculative  purchases  for  the  coming  season. 
If  he  can  gain  the  control  of  a  particular  manufac- 
ture, he  will  often  speculate  so  as  to  gain  a  monop- 
oly in  that  article  for  his  own  especial  benefit.  The 
miller,  anticipating  a  bad  harvest,  will  buy  up  all  the 
grain  his  means  and  credit  will  permit,  and  wait  his 
opportunity  of  selling  when  there  is  a  scarcity  in  the 
market,  and  he  can  command  his  own  price.  The 
manufacturer  applies  a  new  principle  in  machinery, 
by  which  he  expects  to  make  a  large  saving  of  time, 
and  so  works  up,  perhaps,  double  the  quantity  of  the 
raw  material  without  extra  cost.  Or  he  makes  a  new- 
article  which  he  hopes  will  meet  a  ready  sale.  He 
employs  his  capital  in  making  goods  in  the  winter, 
looking  for  orders  in  the  spring.  A  man  may,  by 
perseverance,  economy,  and  close  application  to 
business,  succeed  in  making  a  competency  as  the 
fruits  of  honest  industry,  but  the  one  more  ambitious 
will  adopt  the  quicker  method  by  entering  the  arena 
of  speculation,  which  opens  to  him  the  way  of  acquir- 
ing wealth  in  a  single  year. 

The  speculator,  to  be  successful,  must  know  what 
he  is  about;  he  must  have  knowledge,  look  ahead, 


7 


and  watch  the  signs  of  the  times.  Scanning  the  dis- 
tant horizon  in  the  commercial  and  financial  world, 
he  will  foresee  "  coming  events  which  cast  their 
shadows  before,"  and  be  the  first  in  the  field  to  profit 
by  them.  The  old  maxim  of  "  buying  cheap,  selling 
dear,"  is  the  sine  qua  non  of  speculation.  A  wealthy 
operator  in  Wall  street  was  asked  one  day  how  he 
made  his  money,  "  I  bought  with  the  rise,"  he  replied. 
Another  retired  gentleman,  in  answer  to  the  same 
question,  said,  "  I  sold  with  the  fall."  Each  was 
successful,  although  taking  a  different  course. 

|j||0(ltt;$  CD|Wranfli.— There  are  certain  principles  un- 
J^II  derlying  the  successful  application  of  stock 
operations,  which,  if  understood,  will  guide  the  opera- 
tor in  taking  advantage  of  the  market.  It  must  al- 
ways be  remembered  that  two  forces  are  continually 
at  work  in  Wall  street,  the  effects  of  which  you  must 
endeavor  to  turn  to  your  own  profit.  The  great  sec- 
ret of  success  is :  Never  let  your  neighbor  know 
what  you  are  doing.  Let  this  be  your  motto,  and 
never  lose  sight  of  its  importance — for  to  secrecy, 
more  than  anything  else,  all  the  leading  men  on  the 
street  to-day  owe  their  position  and  wealth. 

Never  speculate  beyond  your  means.  There  are 
many  influences  at  work  to  tempt  the  operator  to  rush 
blindly  into  the  stream  of  speculation,  and  go  beyond 
his  depth.  The  speculator  who  is  not  guided  by  the 
exercise  of  discretion  and  common  sense  should  not 
complain  if  his  indiscriminate  investments  terminate 
in  disaster.  Rumors  and  false  reports  are  commonly 
resorted  to,  for  the  purpose  of  producing  certain  ef- 


s 

fects.  The  very  circumstances  calculated  in  your 
mind  to  produce  a  rise  may  have  been  announced  for 
a  contrary  purpose.  The  news  which  vou  regard  as 
fresh  may  have  been  known  and  acted  upon  hours 
previous  to  your  entering  the  market,  and  a  sudden 
break-down  follow  an  upward  movement,  so  that, 
while  congratulating  yourself  on  a  sure  thing,  you  may 
be  actually  left  out  in  the  cold.  In  such  instances  it 
is  often  best  to  act  on  your  own  judgment,  using  cau- 
tion or  boldness  as  necessity  may  require. 

The  price  of  stocks  is  often  influenced  by  money, 
which,  like  all  other  commodities,  is  governed  by  the 
law  of  supply  and  demand.  When  an  abundance  of 
money  is  in  circulation  it  is  more  easily  obtained  at 
low  rates ;  so  you  buy  stocks  because  it  is  easy  to 
carry  them.  On  the  other  hand,  if  money  is  scarce 
the  rates  become  higher  ;  you  therefore  sell  to  avoid 
the  expense  of  carrying.  The  operator  should  there- 
fore be  posted  on  financial  affairs,  and  the  best  way 
to  do  this  is  to  subscribe  to  our  weekly  paper,  The 
Wall  Street  Review,  which  gives  all  latest  information 
and  quotations  of  the  stock,  bond  and  money  market. 
The  subscription  is  $1.00  a  year  or  50  cents  for  six 
months.  Specimen  copy  will  be  sent  to  any  address 
by  the  publishers,  John  Hickling  &  Co.,  72  Broad- 
way, New  York. 

It  is  not  necessary  to  be  present  in  Wall  street  in 
order  to  operate  in  stocks.  There  is  a  large  class 
who  seldom,  if  ever,  visit  their  brokers'  offices,  send- 
ing their  orders  by  letter  or  telegram.  Persons  away 
from  New  York  can  give  instructious  to  their  brok- 


9 


ers,  who  will  carry  out  all  orders  the  same  as  though 
their  customers  were  present  in  person. 

itrtjtttitf  Method.— The  ordinary  method  of  deal- 
ing in  stocks  is  on  a  margin,  and  it  is  absolutely 
necessary  for  the  operator  to  understand  the  mean- 
ing of  the  word  as  well  as  its  proper  application. 
Buying  a  stock  on  margin  means  that  you  are  only 
required  to  deposit  a  certain  sum  of  money  with  your 
broker  to  secure  him  against  loss  should  the  trans- 
action prove  unprofitable.  Putting  it  another  way, 
a  broker  agrees  to  buy  and  sell  stock  and  carry  the 
same  for  you,  provided  he  has  a  guarantee  of  from 
five  to  twenty  per  cent,  of  its  par  value  to  make  good 
any  loss  which  may  arise  from  the  fluctuations  in  the 
market,  also  to  pay  commissions  and  interest  for 
carrying  the  stock.  The  amount  of  margin  required 
by  the  broker  varies  according  to  the  condition  of 
the  market  and  the  stability  of  the  stock.  Some 
houses  will  not  buy  on  a  less  margin  than  20  per 
cent.,  others  15  per  cent.,  but  the  general  rule  is  10 
per  cent.,  which  is  $1,000  for  100  shares.  Persons 
wishing  to  deal  with  small  margins  should  order 
through  Messrs.  John  Hickling  &  Co.,  72  Broadway* 
New  York,  who  will  buy  and  sell  any  of  the  stocks 
and  bonds  on  a  margin  of  two  per  cent.,  or  a  deposit 
of  $200  on  100  shares. 

By  the  marginal  method  the  purchaser  of  stocks 
has  to  make  good  anv  deficiency  in  case  of  a  decline 
in  the  price.  For  instance,  say  you  bought  500  shares 
of  the  Toledo  and  Wabash  at  40,  giving  the  broker 
$50.00,  margin.    Should  Wabash  decline  to  35  you 


10 

would  be  required  to  make  a  further  deposit  of 
$2,500,  to  make  good  the  five  per  cent.  loss.    If  it 
declined  to  20,  your  broker  would  call  upon  you  for 
an  additional  deposit  of  $7,500,  so  that  it  will  be  seen 
that  on  this  plan  the  loss  is  entirely  unlimited  under 
adverse  circumstances.    It  is,  therefore,  a  good  max- 
im to  be  observed  in  Wall  street,  to  "  never  let  a 
stock  run  away  from  you."    Wc  could  give  the  names 
of  parties  who  have  allowed  themselves  to  be  ruined 
by  not  adhering  to  this  rule.    Numerous  as  are  the 
opportunities  to  make  fortunes  in  Wall  street,  it  must 
not  be  forgotten  that  large  sums  of  money  are  often 
lost  there.    We  hope  to  show  the  way  to  avoid  the 
common  errors  of  speculation  and  to  point  out  the 
path  which  leads  to  success.    We  shall  also  show 
that  it  is  not  at  all  necessary  to  have  a  very  large 
amount  of  money  involved  in  stock  operations,  and 
by  following  the  simple  plans  briefly  laid  down  in 
this  book  no  man  need  fear  ruin.    As  soon  as  you 
find  a  stock  going  against  you  close  the  transaction. 
You  will  always  find  the  "  first  loss  the  least."   "  Make 
small  losses,  large  gains."    If  the  purchaser  of  Wabash 
at  40,  just  mentioned,  had  given  his  broker  a  stop 
order  at  38,  the  most  he  could  have  lost  would  have 
been  two  per  cent.,  while  by  holding  on  to  the  stock 
he  took  the  chances  of  losing  the  whole  amount  de- 
posited.    Indeed,  Wabash  is  now  selling  at  9,  so 
you  see  the  purchaser  at  40.  who  still  holds  the  stock, 
is  29  per  cent,  out  of  pocket,  so  long  as  the  stock  is 
not  sold  in  the  market,  a  loss  of  $14,50    on  the  500 
shares.    True  the  loss  is  only  on  paper,  for  by  wait- 


11 


ing  there  is  a  possibility  that  Wabash  may  rise  and 
reach  40  again,  in  which  case  there  would  only  be 
the  loss  of  interest  on  the  value  of  the  stock.  On  the 
other  hand,  it  is  quite  possible  that  Wabash  will  "  sink 
to  rise  no  more."  Had  the  operator  taken  a  small 
loss  at  first,  and  turned  round  and  sold  the  stock 
■"short,"  he  would  not  only  have  avoided  the  loss  oi 
Si  5,000,  but  would  have  made  a  profit  of  more  than 
double  that  amount  without  risk  of  more  than  one  or 
two  per  cent. 

Asft,  %t gular  and  %tion  MU$  —  A  stock,  sold  for 

^-rcash,  is  delivered  before  2. 1 5  same  day  to  the  buyer, 
who  accepts  it  and  pays  for  it  by  certified  check.  A 
Regular  sale  allows  the  purchaser  until  the  next  day 
to  make  payment.  An  option  sale  is  sometimes  made 
in  favor  of  the  seller,  and  sometimes  in  favor  of  the 
buyer.  Qne  hundred  shares  of  Erie  at  28,  seller  3 
days' option,  gives  the  seller  the  privilege  of  delivering 
the  stock  any  time  within  the  three  days ;  if  buyer 
3,  the  buyer  can  call  for  the  stock  and  pay  for  it 
either  on  the  first,  second,  or  third  day  afterward. 
The  abbreviations  are,  for  Erie,  Cash  28  c,  for  Regular 
28  r.,  buyers'  option  3  days,  28  b.  3,  sellers'  option  10 
days,  28  s.  10.  There  is  generally  some  difference 
between  the  price  of  Cash  and  Regular.  When  cash 
stock  is  scarce  it  will  sell  from  \  to  1  per  cent,  dearer 
than  Regular.  Thus  if  Erie  at  28  was  largely  bought 
up  by  a  clique,  the  bears  would  have  to  pay  from  28i 
to  29  for  it.  On  the  other  hand,  if  money  was  scarce, 
holders  of  stock  wishing  to  sell  would  get  less  for 
Cash  than  Regular.    In  the  September  panic  of  1869 


12 

some  stocks  sold  at.  4  per  cent,  lower  for  Cash  than 
Regular. 

Whatever  the  terms  of  the  sales  may  be  they  must 
be  scrupulously  observed  by  both  parties,  and  the 
contract  carried  out  in  perfect  good  faith.  The 
rules  of  the  Stock  Exchange  are  necessarily  very 
stringent.  If  any  member  fails  to  pay  up,  he  is  ex- 
pelled. Should  any  dispute  arise  the  case  is  referred 
to  a  Committee  of  the  Board,  who  decide  the  ques- 
tion on  its  merits;  and  their  decision  is  final. 

«(Ur  the  5dute. — If  a  member  of  the  Stoc  k  Ex- 
change is  unable  to  meet  his  engagements,  the 
stock  which  he  fails  to  receive  or  deliver  is  "  bought 
in  "  or  "  sold  out  "  under  the  rule  (U.  R.)  The  defic- 
iency between  the  price  it  is  sold  at  and  the  contract 
price  is  charged  to  his  account,  and  he  must  make 
it  good.  Should  he  be  then  insolvent  he  would  be 
expelled  from  the  board,  and  not  allowed  to  do 
business  there  until  he  had  paid  up  or  settled  with 
his  creditors. 

Any  one  looking  on  the  brokers  from  the  visitors' 
gallery,  on  a  busv  day,  would  think  he  had  entered 
a  human  bee-hive.  The  jargon  and  gesticulations  of 
the  brokers,  the  shouts  of  the  messenger  boys, 
mingled  with  the  unintelligible  din  from  a  thousand 
voices,  presents  a  scene  of  confusion  which  can 
scarcely  be  described.  The  stranger  would  almost 
believe  himself  in  a  mad-house.  And  yet  the  enor- 
mous transactions  going  on  are  perfectly  harmonious, 
and  it  is  seldom  that  anv  mistake  or  anv  misunder- 


13 


standing  occurs.  A  mere  nod  will  seal  a  contract 
involving  half-a-million  dollars.^  A  single  word  is  as 
binding  as  the  written  document  of  the  best  lawyer 
in  the  world,  for  if  the  code  of  honor  cease  to  reign 
over  these  men,  it  would  be  necessary  to  close  the 
Exchange.  Orders  of  every  description  arrive  from 
every  State  in  the  Union — from  the  merchants  and 
manufacturing  districts  of  the  East,  the  cotton  re- 
gions of  the  South,  and  the  grain  and  mining  districts 
of  the  West.  From  the  large  cities,  the  small  border 
towns,  the  rural  villages  "  still  they  come."  From 
every  point  of  the  compass  the  mails  are  laden  with 
urgent  orders.  Quick  as  thought  the  telegraph  con- 
veys secret  instructions  on  its  wires  to  the  great 
financial  centre  of  Wall  street. 

fpHgltt  ^lOimi  glXVkft.— No  where  is  the  power  of 
Vfmoney  more  exemplified  than  in  Wall  Street. 
Ordinary  rates  for  Call  Loans  are  4  to  7  per  cent., 
but  in  a  stringent  money  market  the  rates  are  much 
higher.  This  is  done  by  withdrawing  greenbacks 
from  circulation,  which  compels  those  who  want 
money  to  pay  whatever  is  asked  for  it — sometimes  as 
high  as  1  and  2  per  cent,  a  day.  In  the  commercial 
world  every  monopoly  exerts  its  influence  on  the 
community,  and  it  is  the  same  in  financial  affairs. 
The  combined  action  of  a  clique  in  making  money 
scarce  answers  a  double  purpose,  The  object  of 
locking  up  greenbacks  is  not  so  much  to  force  bor- 
rowers to  pay  an  exhorbitant  rate  for  its  use,  as  to 
compel  those  who  are  long  of  stocks  to  sell  out.  The 
chief  aim  is  to  make  it  so  expensive  to  carry  stock?. 


1 4 


that  holders  will  unload.  In  proportion  as  the  screws 
are  jjghtened  the  number  of  operators  offering  stocks 
on  the  market  increases,  until,  in  the  hurry  and  con- 
fusion, a  temporary  panic  ensues,  and  prices  fall  5  or 
10  per  cent.  The  clique  then  step  in  and  buy,  and 
when  sufficiently  loaded,  the  money  locked  up  is  then 
put  into  circulation  and  loaned  at  low  rates,  the 
effect  of  which  is  to  send  prices  up.  As  before, 
stocks  declined  with  a  stringent  money  market,  so, 
when  money  becomes  easy,  they  advance,  enabling 
the  clique  to  sell  out  at  a  handsome  profit. 

||jf*0ng  Of  £tOffe$. — One  who  has  bought  stock  and 
ijjyiis  carrying  it  for  a  rise  is  said  to  be  long  of  stock. 
He  may  have  bought  it  on  margin  or  paid  full  mar- 
ket value  for  it,  but  in  either  case  he  is  long,  and  is 
called  a  Bull.  If  you  buy  on  margin  you  are  charged 
interest  for  the  value  of  the  stock. 

^hOlt  0f  #tOCtl!5. — A  man  is  short  of  stock  when  he 
£^has  sold  what  he  has  not  got,  depending  on  a 
decline  in  the  market  to  buy  it  in  at  a  profit.  A  short 
sale  is  a  contract  to  deliver  a  stock  which  you  do  not 
own.  In  this  case  your  broker  borrows  the  stock 
from  day  to  day  until  the  transaction  is  closed. 
Being  short  of  stock  is  like  being  short  of  money 
which  you  borrow  trusting  to  the  future  to  make 
good  the  loan.    One  short  of  stock  pays  no  interest. 

f%  (SoflWr. — There  is  a  condition  of  the  market 
^i\which  is  called  oversold,  that  is,  there  is  more  sold 
than  the  capital  stock  of  the  company  amounts  to. 


15 


At  these  times  when  there  is  a  large  short  interest, 
there  is  great  difficulty  in  borrowing  the  stock,  and 
then  it  is  that  efforts  will  be  made  to  get  up  a  corner. 
The  price  advances  and  the  clique  continues  to  take 
all  the  stock  offered.  The  presistent  bear  still  holds 
out.  He  goes  round  vainly  endeavoring  to  borrow 
the  stock  and  succeeds  for  a  short  time  in  doing  so, 
by  paying,  perhaps,  as  much  as  one  per  cent,  for  its 
use,  but  he  is  eventually  obliged  to  buy  in  at  the 
advanced  price,  and  covers  his  short  sale  at  a  heavy 
loss.  The  most  noted  corner  of  late  years  was  that 
of  Northwest  common,  in  November,  1872.  On  the 
1  ith  of  that  month  it  was  selling  at  77.  Twelve  days 
afterwards  the  price  was  over  200,  having  advanced 
over  125  points.  This  exciting  corner  was  got  up  by 
Jay  Gould,  brought  about  by  a  personal  matter 
between  himself  and  one  or  two  other  magnates  of  the 
street.  The  latter  were  severely  punished,  but  the 
victor  did  not  reap  much  benefit  by  the  spoils,  for 
although  he  made  several  millions  by  the  corner,  yet 
he  had  to  pa)-  high  prices  for  a  portion  of  the  stock 
offered  by  small  dealers,  and  Northwest  has  continued 
since  that  time  to  sag  off. 


jpvmttfl  ft  0flt(»ti  J&tU.— We  will  suppose  you  sold 


*y  short  200  Lake  Shore  at  80,  believing  that  the 
stock  would  decline.  As  you  have  not  got  the  stock, 
you  borrow  it  for  delivery  to  the  purchaser,  who 
gives  you  a  certified  check  for  $16,000  in  payment. 
You  then  pass  this  check  over  to  the  party  who 
loaned  you  the  stock,  as  security.  Lake  Shore  de- 
clined this  last  month  to  73,  so  you  could  then  have 


16 

bought  in  200  shares  in  the  market,  costing  $14,600, 
returned  the  borrowed  stock,  received  back  the 
$16,000,  and  your  short  sale  would  be  covered  at  a 
profit  of  $1 ,400. 

It  instead  of  declining,  you  should  find  that  Lake 
Shore  advanced,  the  party  loaning  you  the  stock 
would  call  upon  you  for  the  difference  above  80,  and 
you  would  of  course  have  to  buy  in  the  market — cover 
— before  the  transaction  could  be  closed. 

Parties  who  have  borrowed  stocks  or  owe  them  on 
buyer's  pr  seller's  options,  must  be  notified  belore 
1 2  o'clock  noon,  to  make  delivery  of  such  stocks  be- 
fore a  epiarter  past  two  in  the  afternoon.  A  very 
large  amount  of  business  is  transacted  by  paying  dif- 
ferences instead  of  passing  the  stocks  from  hand  to 
hand. 

jftfrOllUUiSi$iOtl. — The  commission  for  buying  or  sell- 
"  ing  stock  is  }  per  cent.,  or  $12.50  on  100  shares, 
and  is  uniformly  the  same,  irrespective  of  the  value 
of  the  stock.  For  instance,  a  hundred  shares  of  the 
Union  Pacific  at  30  would  cost  $3,000,  while  100  New 
York  and  Harlem  at  130  would  cost  $13,000.  Yet 
the  commission  in  each  case  would  be  the  same. 

$1|  ^ffilll  in  the  market  means  there  is  a  sudden  fall 
$\  in  prices.  The  sudden  news  of  national  disas-  j 
ter — A  Chicago  fire  ;  evidence  of  panic  brought  on 
bv  the  failure  of  some  prominent  houses — will  often 
precipitate  a  break  in  stocks.  Wall  Street  is  the 
barometer  which  indicates  the  changes  in  commerce  I 
and  finance,  and  rises  or  falls  according  to  surround- 


17 


ing  influences.  It  is  often  so  sensitive  on  signs  of 
bad  weather  that  a  passing  cloud  will  change  its  face. 
C.  C.  &  I.C.  made  a  break  of  10  per  cent,  in  a  single 
day,  causing  the  failure  of  Capron  &  Merriam.  This 
firm  had  previously  been  buying  all  the  calls  on 
that  stock  that  they  could  procure.  They  were  also 
heavily  long  of  stock,  and  had  evidently  gone  too  far 
— speculated  beyond  their  means.  Their  plans  were 
well  laid,  but  they  had  failed  to  observe  that  secresv 
so  necessary  to  success.  The  stock  declined  from  34 
to  30  and  suddenly  tumbled  down  to  20  in  one  day. 
The  hidden  hand  had  struck  the  blow  and  they  were 
floored. 

Where  operations  in  stocks  and  bonds  are  con- 
ducted on  the  sound  princip.es  of  business,  they  are 
sale,  but  if,  in  the  hurry  to  become  suddenly  rich  we 
plunge  headlong  into  the  vortex  of  speculation,  ig- 
noring all  the  lessons  of  experience,  disaster  must 
follow. 

When  a  stock  declines  a  little,  or  a  stock  which 
has  been  strong  weakens,  it  is  said  to  be  off. 


I  llC  "  $lUkUUf  |PrOCf$i6l.— This  is  putting  down 


^prices  a  little  to  get  people  to  sell  out,  when  the 
clique  step  in  and  take  the  stock.  They  then  raise  it 
by  bulling  the  market,  and  unload  at  high  figures. 
This  operation  being  repeated  is  called  "milking  the 
street." 


®L  DM  (Dttt." — This  occurs  to  an  operator  on  the 
g^l  marginal  plan,  whose  broker,  finding  the  stocks 
running  against  him,  is  compelled  to  sell  his  customer 


18 


out  when  the  margin  is  exhausted.  If  a  man  bought 
100  Wabash  at  20,  depositing  $1,000  with  his  broker 
as  margin,  which  is  security  to  the  broker  against 
loss,  and  then  Wabash  should  decline  to  12  or  10, 
the  operator,  failing  to  put  up  more  margin,  would  be 
"sold  out.'' 

(fait  %0M—  Is  made  by  depositing  stocks,  bonds, 
etc.,  as  collateral  at  about  So  per  cent,  of  their 
market  value.  The  money  so  obtained  is  a  call  loan, 
for  the  reason  that  it  is  liable  to  be  called  in  at  any 
moment.  Gilt-edged  collaterals  are  generally  sought 
for.  These  are  Governments,  gold  bearing  State 
bonds,  first  class  Railroad  bonds  and  Bank  Shares. 
No  collaterals  that  have  not  a  marketable  value  at 
the  Stock  Exchange  are  considered  good. 

fjjf* 0  ^lafce  a  aunt  is  to  sell  out  a  stock  for  cash,  i.e., 
V  to  be  delivered  and  paid  for  the  same  day,  and 
then  buy  it  back  regular,  1.  e.,  deliverable  the  follow- 
ing day. 


£ame  iCUtrk  is  one  who  has  lost  heavily  and  is 
sorely  crippled  in  his  resources,  but  stiifhas  not 
iailed,  and  is  therefore  allowed  to  waddle  along. 
There  are  some  dead  ducks  in  Wall  street,  and  not  a 
few  lame  ones.  Some  have  become  lame  through 
their  own  faults  ;  some  through  the  faults  of 
others.  To  the  looker-cn  it  would  appear  the  easiest 
matter  in  the  worid  to  make  money  in  Wall  Street. 
A  man  looks  at  the  price  of  Union '  Pacific  at  25  and 
finds  it  selling  afterward  at  40.  so  he  thinks  he  will 


19 


go  in  and  buy  100  shares,  depositing  $600  margin. 
Instead  of  U.  P.  advancing  still,  as  he  expected  in  his 
ignorance  it  would  do,  he  finds  the  stock  declines  to 
35.  If  he  has  no  resources  he,  of  course,  loses  the 
$600  almost  before  he  can  realize  the  fact.  The  fluc- 
tuations in  the  stock  market  are  often  so  sudden  that 
unless  the  operator  can  watch  the  market,  or  give 
orders  to  his  broker  to  do  it  for  him,  he  will  frequent- 
ly lose  the  opportunity  of  making  a  good  turn. 

t^il$h  ,fjllf  is  a  sham  transaction  between  two 
brokers  for  the  purpose  of  influencing  the  market 
and  making  a  stock  appear  active.  It  is  a  bluff 
game,  but  if  detected,  the  board  will  inflict  a  severe 
penality. 

$|L  (&tt  ©lit  is  to  sell  stock  which  has  been  found 
M\  burdensome.  When  a  pool  or  party,  loaded  with 
stock,  sells  out  either  at  a  loss  or  gain,  the  transac- 
tion is  closed,  and  is  called  a  get  out. 

1&)}t$\\\\t\\\$. — "  I  have  made  some  money,  how 
shall  I  invest  it  safely?"  is  ever  and  anon  the  cry 
ot  the  merchant,  tradesman,  lawyer,  clergyman,  far- 
mer and  mechanic.  Every  decade  brings  some 
mania  which  takes  hold  of  the  public  mind.  At  one 
time  there  will  be  a  rush  for  real  estate,  and  every 
man  to  be  in  fashion  must  live  in  his  own  house  or 
buy  a  patch  of  ground.  Industrious  mechanics  and 
tradesmen  of  small  means,  with  frugal  wives,  after 
scraping  a  few  thousands  of  dollars,  rush  into  real 
estate.  Another  time  when  things  are  prosperous 
money  will  be  put  out  on  bond  and  mortgage — loans. 


20 


are  all  the  rage.  Then  there  are  the  street  railroad 
investments,  which  have  so  frequently  been  found, 
if  not  profitable,  at  least  permanent.  Again  the  dif- 
ferent branches  of  trade  are  embarked  in  with  ever- 
recurring  failure.  Now  everybody  is  off  to  make  a 
fortune  in  silver-mining.  Then  the  tide  of  excite- 
ment turns  in  favor  of  the  oil  regions,  or  carried 
away  to  the  salted  diamond  fields  of  the  West. 

There  is,  of  course,  some  degree  of  risk  in  every 
form  oi  investment.  The  tradesman  who  opens  a 
store  can  have  no  guarantee  beforehand  that  his 
business  will  prove  a  success.  He  may  commence 
with  a  capital  of  $5,000  or  §50,000.  but  it  is  after  all 
a  speculation,  which,  it  is  needless  to  say,  often  ends 
in  failure  Let  us  for  a  moment  glance  at  what  is 
accomplished  by  the  merchant  or  tradesman.  Statis- 
tics show  the  startling  fact  that  over  ninety  out  of 
a  hundred  men  fail  in  business,  either  becoming 
bankrupt  or  insolvent  at  some  period  of  their  career. 
There  are  certainly  many  brilliant  examples  of  re- 
markable prosperity  to  be  found  in  commercial 
circles,  but  they  are  the  exceptions,  which  prove  the 
rule.  The  merchant,  to  be  successful,  must  employ 
the  proper  means  of  success,  and  have  considerable 
capital.  He  must  subject  himself  to  the  greatest 
diligence,  and  exercise  the  strictest  economy  in  con- 
ducting his  affairs.  He  must  be  an  expert  buyer, 
and  have  a  perfect  knowledge  of  values.  Then  he 
is  dependent  upon  the  system  of  credit,  and,  although 
using  great  care  and  discrimination  in  selecting  his 
customers,  he  cannot  avoid  contracting  bad  debts. 


21 


Following-  up  the  merchant,  after  years  of  perse- 
vering' industry  and  many  changes  of  fortune,  we 
find  his  stock  increased,  his  liabilities  increased,  and 
a  large  increase  of  bad  debts  to  the  account  of  pro- 
fit and  loss.  A  commercial  crisis  ensues.  The 
market  is  glutted,  but  no  buyers.  Creditors'  bills 
become  due,  but  cannot  be  met.  As  a  dernier  resort 
the  merchant  tries  inflation,  thereby  increasing  his 
obligations  bv  renewed  promises  to  pay  on  paper. 
This  is  "  the  last  straw  that  breaks  the  camel's  back." 
Stretching  every  nerve  in  the  vain  endeavor  to  main- 
tain his  honor  and  credit,  he  finally  becomes  a  victim 
to  misfortune.  His  diminished  assets,  consisting  of  a 
depreciated  stock  and  a  list  of  uncollectable  accounts, 
are  handed  over  to  his  creditors,  who  close  the  scene 
by  tak'ng  full  possession  of  his  affairs. 

Investments  in  stocks  and  bonds,  while  offering 
equal,  and,  in  many  instances,  superior  prospects  for 
making  money,  present  advantages  not  to  be  found 
in  any  other  pursuit.  The  investor  in  Wall  Street 
can  select  such  securities  as  will  pay  dividends  at 
double  the  rates  of  interest  allowed  by  the  banks, 
and  have  full  personal  control  of  the  same.  His 
capital  is  not  locked  up,  as  in  the  case  of  the  merch- 
ant who  gives  long  credit.  His  securities  have 
always  a  marketable  cash  value,  convertible  into 
greenbacks  at  an  hour's  notice,  enabling  him  to  sell 
out  his  interest  whenever  he  thinks  well.  Should  he 
wish  to  visit  Europe  on  business  or  pleasure,  he  can 
leave  his  securities  locked  up  until  his  return.  If  he 
wishes  to  remain  at  home,  instead  of  his  time  being 


22 


engrossed  in  the  monotonous  routine  of  a  store  or 
counting-room,  he  has  leisure  to  enter  into  the  intel- 
lectual pleasures  or  physical  recreations  of  life,  with- 
out detriment  to  his  pecuniary  interests.  In  fine,  he 
has  increased  facilities  for  watching  affairs  of  nation- 
al importance,  and  the  development  of  the  resources 
<>i  the  country  opens  to  him  a  new  and  wide  field 
for  the  study  of  finance. 

illting  g(WH.— It  is  an  old  saying,  "any  fool  can 
make  money,  but  it  takes  a  wise  man  to  keep  it." 
This  is  especially  true  of  Wall  Street,  where  money 
is  constantly  changing  hands.  The  lucky  speculator 
who,  starting  with  a  few  hundred  dollars,  makes  a 
hundred  thousand  in  a  few  months  or  weeks,  is  apt  to 
become  careless,  and  in  proportion  as  his  prosperity 
increases,  will  often  allow  himself  to  be  led  away  in- 
to reckless  speculation  and  extravagance,  and  be 
caught  at  last  in  the  meshes  of  his  own  folly.  The 
thirst  for  excitement,  the  desire  to  become  a  million- 
aire all  at  once,  makes  him  oblivious  to  the  wisdom 
of  prepairing  for  a  rainy  day. 

Salting  down  may  be  called  conservatism,  or  "hold 
fast  that  which  is  good ;"  invest  a  portion  of  your 
money  in  solid  securities.  Reverses  in  every  busi- 
ness are  sure  to  come.  The  Spragues,  with  large 
resources  and  "continued  success,  owe  their  fall  as 
much  and  more  to  over  speculation  than  the  exigen- 
cies of  the  times.  They  had  more  business  on  their 
hands  than  they  could  control,  and  found  to  their 
cost  that  bricks  and  mortar,  factories  and  lands  were 


28 

valuable  only  as  they  could  be  converted  into  money. 
The  possession  of  Governments  or  first-class  securi- 
ties salted  down  could  at  any  time  have  saved  them. 
The  lack  of  it  drove  them  into  bankruptcy. 

fCaUtlt)  in  |?0ttJtJi$i,— The  sale  of  railroad  bonds  is 
getting  to  be  a  favorite  mode  of  speculation.  On 
another  page  we  have  given  a  list  of  the  railroads 
in  default  on  January  i,  1875.  The  last  and  greatest 
panic,  that  of  1873,  was  caused  mainly  by  the  effort 
to  build  too  many  railroads.  The  state  of  New 
York,  for  example,  has  bonded  its  towns,  municipali- 
ties and  counties  to  upwards  of  $200,000,000,  to 
construct  railroads.  In  the  Western  States  the 
method  of  operations  was  varied.  Sometimes  a  civil 
engineer,  a  small  capitalist,  and  one  or  two  land 
operators,  would  get  together,  form  a  railroad  com- 
pany, usually  with  some  high-sounding  title.  The 
projected  road  would  be  500  miles  long,  more  or  less. 

"  Far  out  upon  the  prairie 
Where  many  heathen  dwell, 
Who  never  read  the  Bible 
Or  heard  the  Sabbath  bell." 

Towns  with  10,  20,  or  50  families,  all  told,  would 
bond  one-tenth  of  the  valuation  of  the  town  for 
building  the  road,  take  stock  in  exchange  for  the 
bonds,  and  turning  round,  donate  the  stock  back  to  the 
patriots — the  original  railway  company — and  expect 
the  oncoming  railway  to  double  the  value  of  their 
land.  The  modest  directors  would  give  their  names 
quite  gratuitously  to  the  stations,  townships,  locomo- 
tives, and  the  future  cities  of  this  Eden.  Sometimes 
towns  would  not  only  bond  their  posterity,  but 


would  turn  out  teams  and  workmen,  and  actually 
grade  the  railroad  ready  for  iron  and  ties,  and  even 
cut  up  the  little  woodland  they  had  skirting  the 
streams  of  water,  to  furnish  the  necessary  timber. 
In  some  few  cases  we  have  known  towns  in  Iowa  to 
bond  the  property  heavily,  invite  the  railroad  corn- 
pan  v  to  sue  said  town,  to  foreclose,  get  judgment 
and  then  issue  what  is  termed  "a  judgment  bond." 
The  holder  of  this  could  enter  at  once  and  sell  the 
property  of  the  town.  Thus  determinedly  did  the 
people  of  the  West  labor,  and  so  abjectly  did  they 
"  spout  "  their  credit  to  get  a  railroad  anyway,  no 
matter  by  what  means,  but  anyway  to  get  a  railroad 
through  their  town ;  and  so  rapidly  did  this  plan  of 
building  railroads  get  favor,  that  for  many  years  7,000 
miles  of  railroad  were  built  each  year,  until  not  a 
town,  nor  a  county,  nor  a  corporation  in  the  West  was 
free  from  debt.  These  projects  have  been  coming  up 
to  Wall  Street  for  years.  The  genius  of  each  indi- 
vidual enterprise,  entitled  generally  railway  king, 
would  enter  one  of  our  Wall  Street  banks,  with  one 
pocket  crammed  full  of  stock,  the  other  pocket  ple- 
thoric of  bonds,  and  carpet-bag  full  of  assorted  lots 
of  muncipal  bonds,  all  given  to  build  the  Chicago  and 
North  Pole  Air  Line.  That  man  would  leave  Wall 
Street  with  iron  enough  to  iron  his  road,  leaving  51 
per  cent,  of  the  stock  of  his  road  behind  him,  and  the 
great  Wall  Street  banker  would  be  Eastern  director 
and  general  financial  agent  of  this  road,  of  which  not  a 
rod  was  yet  built.  We  know  of  one  railway  enterprise 
of  vast  proportions,  claiming  to  be  a  very  large  link 
in  the  great  Union  Pacific  chain  securing  a  land  grant 


25 


from  government  of  some  3,000,000  of  acres,  $7,000, 
000  in  bonds,  all  sold  at  90,  and  stock  of  equal 
amount,  and  all  the  money  that  was  ever  paid  in,  not 
from  bonded  funds,  was  $1,400  for  printing,  etc. 
These  bonds  are  now,  and,  ol  right,  ought  to  be,  ex- 
ceedingly flat  at  15.  Our  readers  have  heard  much 
of  these  things.  But  an  end  came,  and  a  day  of 
reckoning  was  had,  and  so  the  bubble  burst. 

Now  these  bonds,  besides  a  very  large  number  of 
municipal  Southern  levee  bonds,  mining  stocks,  and 
other  small  fry,  are  here  floating  about  in  all  manner 
of  conditions,  some  good,  more  fancy,  and  all  just  the 
kind  of  material  of  which  fancy  speculation  is  made. 
Messrs.  John  Hickling  &  Co.  have  the  history  of 
these  enterprises  all  at  command.  They  are  posted 
as  to  their  past  follies,  present  condition  and  future 
prospects.  It  is  the  future  that  concerns  the  buyer 
most.  Being  fully  posted  on  the  data  up  to  the 
present  hour  we  may  be  able  to  denote  something  of 
advantage  to  the  holder  of  these  bonds  or  to  the 
one  likely  to  purchase.  Those  wishing  to  buy  or 
sell  should  communicate  with  us,  so  as  to  enable  us 
to  watch  the  market  in  their  interests,  or  report  to 
them  any  movement  which  may  take  place.  Parties 
wishing  to  dispose  of  their  bonds,  in  the  New  York 
market,  should  forward  them  to  us  by  Express, 
securely  sealed,  and  we  will  seize  any  opportunity  to 
effect  a  desirable  sale. 


26 


COMPLETE  LIST  OF  DEFAULTED  R.  R,  BONDS. 


The  following  are  in  Litigation  : 


N...MF  AHD  Dkicbiption. 


Alabama  k  <  I  ..••»!  •  •  •»  lit  njtg.,  g.,  gi  ar  by  Ala. 

Receiver's  certificates  

Atlanta  k  hu  lin.<  nil  Air  J. me,  lat  in  

Atlantic  *  OwM  Western,  1st  mortgage  

2ud  mortgage  

Other  bonds  

B.,  Hart.  *  Brie,  Herded  m  (19,000,000 guar.), . . 
B'gtou  4  Houthwi-stim,  Int  m..  coup,  or  rcg. 

Cairo  k  Vino-unes,  1st  mortgage,  gold  

California  Pacific,  extension  mortgage  ' 

bo  me  bond*   

Cential  of  o»a.  Int  mortgage,  gold,  coupon  

2d  mortgage,  g<nd   "  ' 

Chester  &  I  amaroa  (1,1.),  1st  mortgage,  gold   .  .  . 
Cb  ca  o.  t  lin  o    &  Dubuque.  1st  mortgage  ....  .. 

Chicago,  Dubuque  k  M  uotsots,  1st  m  

Colnnibiia.  Cbn  ag"  k  Ind.  Central,  2d  m  

Davenport  &  Ht.  Paul,  1st  moitvage,  gold  .... 
Detroit,  BtDadale  &  Indiana,  I  at  mortgage. ..... 

2d  mortgage  

Dutch,  as  4  Columbia  1st  mortgage  

Dan  ,  Urb.,  [Jlooni.  &  Pekiu  (I.  13.  *  W.),  latin.!]' 
tort  Waj  hp,  Mui.uic  <fc  Ciun.,  1st  m.,  gold  

2<1  mortgage   

Oilman,  Cliutou  &  Spilngneld,  1st  m  ,  gold 

2d  mortgage,  gold  " '  " 

J.,  P.  &  Mo' lie  1st  in.  to  the  State  of  Florida 

Lake  !  rie  k  Louisville.  1st  and  2d  m'a  

Lake  Shor.  &  Tuscarawas  Valley,  1st  m  

2d  mortgage,  E  <x  B.  K        

L'spoi  t,  1  raw!  dsvule  &  S'thw'n,  1st  m.,  gold 

2d  mortgage   

Louisville,  Cum.  &  Lexington,  various  botda 

T^.U'bvi  le,  Nt  w  Albany  &,  St.  Louie  1st  m  

Mjcou  k  i>ruuswick,  lht  ra.  State  endorsed  bonds 

2d  ninrUraire  

Equipment  bonda   ........ 

Ma;  -  .      .  L-x  ngton.  1st  mortgage  

Michigan  Lake  Shore,  1st  mortgage  

lias  uri,  i.a  sax  .v  xi      1st  m.  on  road  and  land 

lat  niortyag.-,  gnM,  Tebo.  &  Neo  

Cou8oli('.at"d  mortgage  

Monncello  &  Port  Jcrvis  ."II! 

New  Jersey/  .sout  em,  1st  mortgage  

2d  mortgage   

Maryland  &  Delaware  1st  and  2d  mortgages  

N.  w  York,  l'osion  &  Vnntreal,  1st  mortgage 

New  York,  Kingston  &  Syracuse,  1st  m   

Northern  Pac.bc,  1st  mortgage  and  gr  nt  

Oiloeekaud  Allegheny  liiver  consol'd  m  

Peoria  &  I  ock  ls;and  1st  mortage    .. 

Plym  utli,  Kankakee  k  Pacific,  1st  mortgage   

Poughkeepbie  &  Eastern,  1st  mortgage  


Amount  of 
Bonds. 


$6,220,000 
1,200,000 
4,24£,000 

14,414,977 

10,173,079 
10,500,000 
20,000,000 
2,100,000 
3,500,000 
3,500,000 
1,0.  0,000 
3,700,000 
925,000 
660,000 
1,600,000 

8,836,000 
3,092,000 
3,140,000 
l,li0,000 

rxio.ooo 

2,500,000 
2,000,000 
1,800,000 

500,000 
2,000,000 
1,000,000 
4  000,000 

890,000 
2,000,000 

876,000 
l.SOO.OKJ 

500,000 
4,0'5,(IOO 

7«),0<0 
2,5."iO,000 
1,100,000 

15  ,000 

500,000 

880,000 
3,220.000 

350,000 
13,604,000 

5(0,000 
2, 120,000 
1,000,000 

i,m  0,000 

6,250,000 
2,250,000 
30,000,000 
!, 100,010 
1.500,000 
250,000 
500,000 


Bate 
f  per 

Cent. 


8g. 

8 

8 

7g. 

7g. 

7 

7 

8 

7g. 


7g. 

;| 
<  g. 

8 
8 
7 

7g. 
8 
8 
7 

I*' 

8 

u. 

8g. 

8 

7 

7 

7 

8g. 

8; 

6, 7, 8, 

7g. 

7 

7 

7 

7 

8 

6  g. 

7  g- 
7  g. 
'>  g 
7 

7 
6 

6g. 
7g. 
7.30 
7 

7g- 

7 

7 


27 


Name  and  Dksobiption. 


Rockford,  R'k  Island  &  St.  Louis,  1st  m.,  gold. . 
St.  Jo.  &  Denver  City,  1st  m.,  goid,  E.  Divis  

1st  mortgage,  Western  Divis.,  land  grant.... 
8t.  Louis,  Lawrence  &  Denver,  1st  m.,  gold. . . 
St.  Paul  &  Pacific,  1st  m.,  West,  or  main  liue.  . . 

2d  mortgage,  West,  or  main  line  laud  grant. . 

2d  mortgage  and  land  grant  

Brancb  1st  Mortgage  

2dmort  on  80  miles  and  1st  307,  200  A  

1st  mortgage,  St.  Paul  &  Pacific   

Savannah  &  Charleston,  various  issues  

Selma,  Rome  id  Da. ton,  sold  for  $1,000,000  

Syracuse  Northern,  1st  and  2d  Mortgages  

To.  Minn!  2d  £  }landg't,.,792,000acres  [;; 

Stockton  &  Copperopolis,  1st  mort.,  gold  

Toledo,  Peoria  &  Warsaw,  various  issues  

Walkill  Valley,  1st  mortgage  


Total  $248,575,656 


Amount  of 
Bonds. 


9,000,000 
1,50<',000 
5,500,000 
1,020,000 
3,000,000 
6,000,000 
1,200,000 
120,010 
1,200,000 
15,(00,000 
1,100,000 

i',ibo',666 

3,340,000 
1,252,000 
1,000,000 
9,150,000 
700,000 


7  g. 

8  g. 
8  g. 

6  g. 

7  g- 
7  g. 
7 

8 
7 

7  g. 


Companies  settling  with  Bondholders. 


Name  and  Description. 


Atchison  &  Nebraska,  1st  mortgage  

Atlantic,  Mississippi  &  Ohio,  old  bonds  

Atlantic  &  Pacific,  1st  m  ,  A.  &  P.  land  grant... 

2d  mortgage,  A.  &  P  

Interest  scrip  

B'liugton,  C.  Eapids  &  Minn.  1st  m.  g.  sink'g  iund 

1st  mortgage,  gold,  Milwaukee  Division   

Canada  Southern,  1st  mortgage  

Cairo  &  St.  Louis,  1st  mortgage  

Atchison,  To.  &  Santa  Fe,  l>t  mortgage   

Witchita  &  S.  W.,  1st  gaur  

Chesapeake  &  Ohio,  1st  m.,  sinking  fund,  gold. . . 

Other  bonds,  various  issues  

Chi.  &  Canada  S'th'n,  1st  m.,  g.,  for  $8,i  00,000. . 
Chi.,  Dauville  &  Vincenues,  1st  m.  main  liue  

1st  mortgage,  Indiana  extension  

Chicago  &  Michigan  Lake  Shore,  1st  mortgage  

1st  mortgage  

1  st  mortgage,  on  branch  

Detroit,  Eel  hiver  &  Illinois,  1st  mortgage  

Fort  Wayne,  Jackson  &  Saginaw,  1st  mortgage  ... 

2d  mortgage  

Frederick  &  Pennsylvania,  1st  mortgage  

Ind'nanplis.  Bloomington  &  West'n,  1st  m. ,  gold. . 

2d  mortgage  

Extension  

Kansas  City,  St.  Jo.  &  Council  Bluffs,  St.  Joseph 

and  Council  Bluffs  R.  R,  1st  mortgage  

St.  Joseph  &  Council  Bluffs  R.  R  ,  conv  

Kansas  City,  St.  Jo.  <fc  Council  Bluffs,  con.  mort 

New  consolidated  mortgage  

1st  mortgage.  C.  B.  *  St.  J  


Amount  of 
Bonds. 


$3,750,000 
4,900,000 
3,000,000 
3,000.000 
1,718.000 
5,400,1  00 
2,200,000 
9,0i  0,000 
2,500,000 
7,042,000 
412,000 

12,364,000 
7,012,557 
2,000  000 
2,500,000 
5P2.000 
3,500,0d0 
1,350,000 
1,300,000 
1,826,000 
1,500,000 
508,000 
250,000 
3,000,000 
1,500.000 
6,000,000 

1,400.000 
625,000 
687.500 
947,000 
500,000 


Various 


6  g 

7  g 
7  g 
7  g 
7 

7  g 

?■ 

7  g 
7  g 

87g 


8 

6  g. 

7  g. 
8 

7  g. 


Name  and  Description. 


Kansas  Pac,  1st  m.,  land  grant,  3,000,000  acres. . 

let  mortgage,  from  140  miles  

let  mortgage,  coupoi>(  Leaven  worth  Branch)  

Land  bonds  on  2,000,009  acres  

Other  issues  

Port  Huron  A;  Lake  Mich,  (now  Chicago  k  Lake 

H.)  1st  mortgage,  traffic  guaranteed  

Mo.  liiver,  Fort  Scott  &  Gulf,  1st  in.,  land  grant 

2d  mortgage,  gold  

Lake  .Superior  k  Miss.,  1st  mortgage,  land  grant . . 
Leavenw'th,  L'rence&  Galv.,  1st  in.  land  grant  con 

Kansas  City  k  Santa  l'e,  1st  mortgage,  guar. 

Southern  Kausas,  1st  mortgage  

New  Jersoy  Midland,  1st  and  id  mortgages... 

Oregon  k  California,  1st  mortgage  

Savannah  At  Memphis,  1st  m.,  (endorsed  by  Ala.  i 
Sheboygan  <fc  Fon-du-lac,  1st  mortgage  

1st  mortgage,  extension  

Toledo,  Detroit  &  Canada  Southern,  1st  mortgage . . 
Union  .Pacific,  Central  Branch,  1st  mortgage,  gold 


Total   $153,050,707 


Amount  ol 
BondB. 


Bate 

per 
Cent. 


6,455,000 
1,063,000 
000,000 
1,821,250 
8,261,000 

1,800,000 
5,000,000 
2,000. 000 
4,500,000 
5,000,000 
720,000 
160,000 
4,500,000 
10,500,000 
1,050.01X1 
750,000 
694,000 
1,500,000 
1,600,000 


7  g. 
C  g. 
7 

7  g. 

6  &  7 

7 
10 
10 

7  g. 
10 
10 

8 

7  g.  &  7 

7  g. 

8  g- 
7 

8 
7 

6  g. 


Companies  in  Statu  Quo. 


Name  and  Description. 


Alabama  Central,  1st  mortgage  

Arkansas  Central,  1st  mortgage,  gold  

Brunswick  &  Albany,  1st  mortgage,  gold  endorsed 

2d  mortgage,  gold,  not  endorsed  

Chicago  4;  Southwestern,  1st  m.,  gold,  not  guar. . 
Cleveland,  Mt.  Vernon  *  Del.,  1st  mortgage,  gold 
Detroit  &  Milwaukee,  1st  mortgage  

2d  mortgage  

2d  mortgage,  funded  coupons  

1st  funded  coupons  

Bonds  of  June  30, 1866  

2d  mortgage,  (D.  k  P.  )  

Other  issues  small  

Indiana  &  Illinois  Central,  1st  mortgage  

International  A;  Great  Northern,  convertible  m.. 
Jersey  Citv  &  Albany,  1st  m.,  Rockland  Central. . 

1st  mortgage,  Bidgefleld  Park   ... 

Mississippi,  Ouchiia  &  Ked  River,  1st  m.,  gold... 

Kent  County,  1st  mortgage   ... 

Little  Rock,  Pine  Bluffs  &  New  Orleans,  1st  m. . . . 
Louisville,  Paducah  &   Southwestern,   1st  m., 

(Mizabethtown  k  P.)  •  ■  

Memphis  &  Little  Rock,  1st  m.,  land  grant  

2d  mortgage   ■  -  ■  •  •  •  •  ■ 

Milwaukee,  Lake  Shore  &  Western,  1st  m.,  gold.. 

Milwaukee  k  Northern,  1st  mortgage  •  

Mobile  &  Alabama  Grand  Trunk,  1st  m.  endorsed 
Montgomery  k  Eufanla,  lstm.,  endorsed  by  Ala.. 

1st  mortgage,  not  endorsed  


Amount  of 
Bonds. 


$1,600,000 

72C.000 
500,000 
350,000 
1,000,000 
2,300,000 
2,500,000 
1,000,000 
377.000 
628,526 
1,695,351 
100,000 
100,000 
1,955,000 
3,150,000 
250  000 
250,000 
500,000 
400,000 
750,000 

3,000,000 
1,300,000 
1,000,000 
3,500,000 
l,625,'i00 

880,1'Om 
1,"40,0'I0 

330,'  00 


8 

8  g. 

6  g. 

7  g. 
7  g- 
7  g- 
7 

8 
7 
7 

6  &  7 
7 

pr 

7 
7 

7  g. 
6 

7  g. 


8 

i"e'.' 

8 

8  g. 


ftov., 

1873 

Jan. , 

1874 

■  1872 

Sept., 

1874 

Nov., 

1872 

Dec, 

1873 

Jan., 

1875 

July, 

1872 

Mar., 

1873 

Jan., 

1873 

29 


Name  and  Desomption. 


New  Haven,  Midclletowu,  k  Willimantic,  1st  m . 

2d  mortgage  

New  Orleans,  Mobile  &  Texas,  1st  m.,  (East  Div.) 
New  York  &  Oswego  Midland,  1st  mortgage. . . 

2d  mortgage  

3d  mortgage  or  equiptment  bonds  

Western  extension  

Petersburg  bonds    

Philadelphia  &  Baltimore  Central,  1st  m..  Pa.. 

2d  mortgage,  Pa  

1st  mortgage,  Md  

Pittsburg, Wash'gt'n  &  Bait.  1st  m.  &  Turtle  Creek 

2d  mortgage  to  Baltimore  City  

Port  Royal,  1st  mortgage,  not  guaranteed  

St.  Louis  &  Southwestern.  1st  m.,  gold,  convertible 

Evausville  Henderson  &  Nashville,  1st  mortgage 

Consolidated  mortgage,  gold  

Selma  &  Gall,  lstm.,  (guaranteed  by  Alabnma.)... 
Selma,  Marion  &  Memphis.  1st  m.  (endorsed  byAla) 
Tex.&Pacifieland  grantbonds(not  sold  to  the  public 
Vermont  Centra],  1st  mortgage  

2d  Mortgage  

Western  Alabama,  bonds  not  guaranteed  

Wilmington  &  Heading,  2d  mortgage  

Wilmington  &  Western  (Del.,)  Ut  mortgage... 
West  Wisconsin,  1st  mortgage  

1st  mortgage,  (Southern  extension)  

Wisconsin  Central,  mortgage  and  land  grant. . . 


Total 


Amount  ol 
Bonds. 


Companies  Foreclosed. 


Cayuga  Lake,  1st  mortgage  I 

2d  mortgage  

Des  Moines  Valley,  1st  m.,  Keokuk  to  Des  Moines' 

1st  mortgage  on  85  miles  and  466, on  acres  

Little  Rock  &  Fort  Smith,  1st  mortgage,  gold  | 

Land  grant  sinking  iund  bonds  

Mobile  &  Montgomery,  1st  m.  gold,  (end.  by  Ala.) 

2d  mortgage,  not  endorsed  ' 

Montclairoi  Ne>.  Jersey,  1st  mortgage,  gold,  guar 

2d  mortgage  ! 

Income  bonds  

N.  Orle'ns,  Mobile,  &TVs,  lstm,  bonds, W.Miss.Rj 

St.  Louis  &  St.  Joseph,  let  mortgage,  gold  [ 

Selma,  Rome  &  Dalton,  (64  miles  in  Ga.)  Receiver's 

certificates   

1st  mortgage  

2d  mortgage,  (Alabama  <Jfe  Tennessee  River)  

General  mortgage  

Equiptment  bonds  

South  side  ol  Lon«  Island,  2d  and  extension  m.. 
Springfield  &  Illinois  S.  E.  1st  mortgage,  gold  

2d  mortgage,  gold  

Sullivan  &  Erie,  1st  mortgage,  convertible  

Sunbury  ti  Lewistou   


$8i  0,000 
400,000 
2,310,d0(i 
4.690,000 
3,50",000 
3,780,00(1 
2, 50. ',ih  0 
1, "00,000 

i.80(>,nni> 

1,5"P,000 
888,000 
6  250,0(10 
1,100,000 


4,1100,0011 
241,i  00 
5,0  0,000 
23(VK10 
2,500,000 
3,40(1,000 
1,000,0'  0 
1,0(10,000 
1,200.000 


Total   I  $48,889,000 


7g. 

Jan.,  1874 

7 

8 

Oct.,  1871 

8 

Oct.,  1871 

6g. 

1872. 

7 

1872. 

8g. 
8 

May.  1873 

7g. 

Sept.  1873 

7 

July,  1873 

7 

8 

Jan..  1873 

6g- 

May,  1873 

8 
7 

1871 

8 

1871 

7 

Oct.,  1871 

10 

1871 

7 

Oct.,  1873 

Tg. 

Aug.  1873 

7  g. 

Aug.  1873 

7 

May,  1873 

7 

Oct.,  1872 

30 


NOTES 


Money  may  be  sent  by  Postal  Money  Order  or  in 
Registered  Letter;  large  amounts  by  Express  or 
Bank  Draft  made  payable  in  New  York  to  our  order. 

Gold,  Stocks  or  Bonds  may  be  sent  safely  by  Ex- 
press, securely  sealed,  and  the  value  marked  outside 
the  package. 

Urgent  orders  may  be  sent  by  Telegraph,  and  the 
money  deposited  at  the  nearest  branch  office  of  the 
Western  Union  Telegraph  Company,  when  the 
amount  will  be  transferred  to  us  by  the  company  in 
New  York,  and  telegraphic  answer  returned  immed- 
iately the  order  is  executed. 

In  corresponding,  please  be  careful  to  inform  us 
how  letters  should  be  addressed,  giving  Name,  Resi- 
dence (or  Box),  Town,  County  and  State,  as  plainly 
as  possible,  to  insure  quick  returns.  Delay  is  some- 
times occasioned  by  failure  to  observe  this  rule,  and 
that  is  our  apology  for  making  these  remarks. 

Information  concerning  stocks,  bonds  and  gold  will 
be  cheerfully  given,  and  we  invite  correspondence  on 
any  questions  touching  the  market.  Letters  of  in- 
quiry will  receive  our  prompt  attention. 

Address  all  orders  and  communications, 

JOHN  HICKLING  &  CO., 
72  Broadway, 

New  York. 


PART  SECOND. 


Ut£,  (jtaHjS,  $JJWttte  Mltf  &tvMU$—  These  are 
[contracts  giving  the  bearer  the  privilege  of  buy- 
ing and  selling  certain  stocks  (selected  and  named 
in  the  contract)  any  time  within  30  days.  The  hold- 
er of  a  Stock  Privilege  is  guaranteed  against  the  loss 
and  liability  attending  marginal  transactions. 

1st. — -A  Put. — A  person  holding  a  Put  contract 
on  Pacific  Mail  at  35,  is  entitled  to  any  decline  below 
that  price,  and  can  close  the  privilege  any  time  dur- 
ing the  thirty  days  ;  but,  in  order  to  realize  the  profit, 
it  is  necessary  to  take  the  market  price  of  the  stock 
at  the  time  you  close  the  contract. 

The  cost  of  a  Put  on  100  shares  is  $106  25. 
2d. — A  Call. — The  holder  of  a  call  contract 
makes  a  profit  in  proportion  as  the  stock  advances  at 
the  time  the  contract  is  closed.  If  you  had  a  Call  on 
Union  Pacific  at  30,  and  the  stock  advanced  to  40, 
you  could  present  the  Call  to  us  and  we  should  pay 
you  10  per  cent.  (i.  e.)  $1,000011  100  shares.  This 
would  leave  you,  after  deducting  cost  of  privilege, 
($106  25),  and  commission  for  closing  which  would 
be  $12  50,  a  net  profit  of  $881  25,  or  eight  hundred 
per  cent,  on  the  amount  invested  during  the  30  days. 
The  cost  of  a  Call  on  100  shares  is  $106  25. 


32 


3d. — A  Spread. — Is  a  Double  Privilege,  con- 
sisting of  a  Put  and  a  Call  in  one  contract,  and  gives 
the  holder  the  privilege  of  either  Putting  or  Calling 
the  stock  during  the  given  time.  The  Spread  can 
be  used  instead  of  margin,  that  is,  we  will  buy  and 
sell  the  stock,  using  the  Spread  in  lieu  of  cash.  This 
is  an  excellent  way  of  operating  in  the  market,  and 
to  our  mind,  the  best  and  safest,  as  well  as  the  most 
profitable  form  of  speculating  in  stocks.  All  the 
money  necessary  to  be  invested  is  one  per  cent.,  and 
there  is  no  calling  up  for  more  money  ;  in  fact,  there 
is  no  liability  whatever  beyond  the  amount  paid  for 
the  privilege.  The  worry  and  anxiety  attending 
marginal  operations  are  avoided,  for  you  only  risk 
one  per  cent.,  and  no  matter  whether  you  be  in  New 
York  or  California,  your  thirty  day  privilege  can  be 
closed  when  there  is  a  favorable  opportunity. 

Until  recent  years  it  was  considered  indispensable 
to  have  a  large  capital  in  order  to  speculate  in  stocks, 
and  many  have  been  deterred  from  operating  either 
from  lack  of  capital  or  the  requisite  knowledge  how 
to  invest.  We  now  offer  to  give  our  services  in 
meeting  this  requirement,  and  to  explain,  in  this 
pamphlet,  how  a  man  with  a  hundred  dollars  may 
come  to  do  a  large  business  in  Wall  Street.  On  our 
system  we  claim  that  it  is  an  impossibility  for  a  man 
to  be  ruined,  for  we  ask  only  a  small  amount  ot  capi- 
tal to  be  invested. 

Puts,  Calls  and  Spreads  are  issued  at  from  i  to  2 
per  cent,  distance  from  the  market  price  of  the  stock 
selected.    Thus,  if  you  wanted  a  Put  on  Wabash, 


33 


selling  at  15,  the  contract  price  would  be  14.  A  Call 
on  that  stock  would  be  at  16.  A  Spread  on  Western 
Union  when  it  is  selling  at  73  would  be  72  for  Put 
and  74  for  Call.  The  price  ol  these  '  privileges  is  1 
per  cent,  or  $100  and  commission  for  every  100  shares. 

4th. — A  Straddle  is  also  a  Double  Privilege  (7.  e.)a. 
Put  and  a  Call  issued  at  the  market  price.  A  Strad- 
dle, of  course,  costs  more  than  a  Spread,  because  it  is 
right  at  the  selling  price  of  the  stock,  and  can  be 
operated  upon  at  once  if  desired.  The  price  of  a 
Straddle  varies  according  to  the  activity  of  the  mar- 
ket and  the  stock  selected,  and  ranges  for  30  days 
from  $250  to  $350.  It  used  to  be  quite  common  to 
pay  $500  and  $800  for  a  Straddle  on  100  shares  of 
stock  in  an  active  market,  but  we  can  now  secure 
them  at  the  first  named  figures.  There  used  to  be 
great  difficulty  in  negotiating  these  privileges,  but 
we  are  now  at  all  times  prepared  to  obtain  them  on 
the  active  stocks  and  on  any  of  the  leading  names 
that  may  be  preferred,  either  members  of  the  Stock 
Exchange  or  responsible  firms.  We  pay  the  profits 
in  cash  or  by  check  immediately  on  presentation. 

These  privileges  can  be  closed  any  time  before  the 
expiration  of  the  30  days.  Of  course,  the  time  to 
close  them  is  when  the  rise  or  fall  is  greatest.  The 
advantage  of  dealing  in  privileges  is  this,  that  you 
can,  under  the  worst  circumstances,  lose  but  1  per 
cent.;  while,  if  the  market  favors  you,  the  profit  on 
one  hundred  dollar  investments  will  often  amount  to 
$1,000.    Many  careful  and  shrewd  operators,  seeing 


34 


their  friends  lose  large  amounts  of  money  on  the  old 
plan,  have  adopted  this  system,  which  promises  to 
supersede  all  others.  Men,  fortunate  in  business, 
and  having  ampk  means,  entering  Wall  Street, 
ignorant  of  the  many  tricks  and  devices  of  rings  and 
cliques,  should  be  guarded  in  their  operations,  until 
their  judgment  is  ripened  by  experience.  A  man  may 
be  lucky  and  sweep  in  two  or  three  hundred  thousand 
dollars,  but  he  must  not  imagine  himself  invinci- 
ble, and  speculate  blindly.  We  could  mention  the 
names  of  many  who  have  lived  to  curse  Wall  Street, 
and  so  will  others  who  follow  their  footsteps  and 
reduce  operations  in  stocks  to  gambling,  and  risking 
the  whole  amount  of  their  capital  recklessly  and 
without  judgment. 

he  $tt1pr0Wd  #l!$frm.-  Until  recently  Stock 
Privileges  were  never  issued  in  less  than  a  100 
shares,  but  to  afford  an  equal  opportunity  to  all  who 
wish  to  make  the  experiment  on  a  small  scale  at  first, 
we  have  adopted  the  plan  of  issuing  Puts,  Calls  and 
Spreads,  on  any  part  of  100  shares,  at  the  same 
proportion  of  premium  and  the  same  distance  from 
the  market,  A  person  may  read  a  great  deal  about 
stocks,  and  know  considerable  of  the  workings  of  the 
many  railroad  lines  in  different  parts  of  the  country, 
and  yet  have  no  practical  experience  of  the  way  to 
go  into  the  market.  What  he  wants  is  some  one 
well  versed  in  the  business  to  give  him  advice  and 
to  operate  for  him  on  a  small  scale,  so  as  to  make  him 
familiar  with  the  idioms  and  usages  of  the  Street. 


35 


At  the  same  time  he  wishes  to  risk  only  a  small 
amount  of  money,  until  he  sees  and  comprehends 
how  the  whole  thing  works.  The  following  scale  of 
prices  will  show  what  amounts  can  be  invested  : 

P*  ri«  of  Mixtxj  §mj  Jtorfe  WxM\t$t$, 
(including  commissions:) 

A  Spread  on  500  shares  costs  $1062  50 

A  Put  or  Call  on  500  shares  costs   531  25 

A  Spread          on  200  shares  costs    425  00 

A  Put  or  Call  on  200  shares  costs   212  50 

A  Spread          on  100  shares  costs   212  50 

A  Put  or  Call  on  100  shares  costs   106  25 

A  Spread          on    50  shares  costs.   106  25 

A  Put  or  Call  on    50  shares  costs   53  13 

A  Spread          on    20  shares  costs.   42  50 

A  Put  or  Call  on    20  shares  costs   21  25 

A  Spread          on    10  shares  costs..   21  25 

A  Put  or  Call  on    10  shares  costs   10  63 

t^Ut  (Sfltttraft, — Suppose  you  had  known  that 
Toledo  and  Wabash  was  going  down,  you  could 
have  ordered  a  Put  on  that  stock  a  short  time  ago 
when  it  was  selling  at  23,  and  the  contract  would  run 
as  follows : 

New  York,  January  10th,  1875. 
The  bearer  may  put  or  deliver  to  the  undersigned  one  hun- 
dred shares  of  Toledo  and  Wabash  common  stock,  at  22,  any 
time  within  thirty  days  from  date.    The  undersigned  is 
entitled  to  all  dividends  paid  during  that  time. 
Expires  Feby.  1  Oth,  1875. 

Signed  


36 


This  would  cost  you  $106.25,  and  if  you  had  held 
the  Privilege  you  could  have  made  10  per  cent,  profit, 
or  $1,000. 

On  the  9th  of  September,  1873,  New  York  and 
Harlem  was  selling  at  140.  Eleven  days  afterwards 
it  fell  to  90.  Had  you  bought  the  stock  at  140  and 
sold  it  at  90,  the  loss  would  have  been  $5,000.  But  it 
you  had  bought  a  Put,  costing  $106.25,  you  could  not 
possibly  have  lost  more  than  the  i  per  cent.,  even  if 
the  stock  advanced.  In  the  above  instance  you  stood 
to  gain  $5,000. 

fa  <£»U  tfOtttrart.— You  can  buy  a  Call  if  you  feel 
0\  certain  that  a  stock  will  advance.  Atlantic  and 
Pacific  Telegraph,  about  a  month  ago,  was  selling  at 
18.  A  Call  on  it  would  have  been  issued  at  19J,  and 
the  following  is  the  form  of  contract : 

New  York,  January  10th,  1875. 

The  bearer  may  call  on  the  undersigned  for  one  hundred 
shares  of  Atlantic  and  Pacific  Telegraph  Company  capital 
stock,  at  19^,  at  any  time  within  30  days  from  date.  The 
bearer  is  entitled  to  all  dividends  paid  during  that  time. 
Expires  Feb.  \0th,  1875. 

Signed  — 

In  the  above  instance  the  stock  advanced  to  29 
during  the  30  days,  which,  if  the  contract  had  been 
closed  when  the  stock  was  selling  at  that  price,  the 
profit  would  have  been  9^  per  cent,  or  $950,  which, 
after  deducting  cost  of  Privilege  and  commission, 
would  be  $831.25  clear  gain. 


37 


On  the  i  ith  of  November,  1872,  Chicago  and  North- 
western was  selling  at  77  ;  twelve  days  afterwards  it 
was  over  200.  The  stock  was  cornered,  and  it  was,  of 
course,  a  very  unusual  occurrence,  but  still  any  one 
having  a  Call  on  it  at  that  time  could  have  positively 
made  over  $10,000  on  an  investment  of  $106.25.  We 
do  not  lead  our  customers  to  expect  such  large 
profits ;  we  quote  the  figures  to  show  what  opportu- 
nities occur  in  the  violent  fluctuations  of  the  market. 
A  person  operating  on  the  marginal  plan,  who  went 
short  of  Northwest  at  80,  stood  to  be  entirely  ruined. 
Daniel  Drew  was  at  that  time  one  of  the  'shorts,  and 
lost  between  one  and  two  million  dollars.  The  fier- 
cest battle  may  be  waging  between  the  bulls  and 
bears,  but  the  holder  of  a  Privilege  may  look  on  the 
wreck  of  millions,  calmly  watch  the  result  without 
fear  of  consequences,  and  secure  his  profit  at  the 
most  favorable  time. 

£ptT&A  (fOtttraft.— The -forming  of  rings,  pools 
and  cliques  in  Wall  street,  often  renders  it  im- 
possible to  judge  of  the  market,  for  if  the  two  ele- 
ments of  speculation  are  evenly  matched,  we  cannot 
readily  foresee  victory  on  either  side.  The  best  laid 
schemes  will  often  fail.  Points  in  Wall  Street  are  as 
numerous  as  blackberries  in  season.  Inform- 
ation is  frequently  given  out  as  a  great  secret  in 
order  to  influence  operators  to  buy  stocks,  when  the 
instigators  immediately  take  an  opposite  course. 

Therefore  we  recommend  buying  Spread  to  hav- 
ing a  Put  and  Call.  In  one  contract  you  are  prepared 
to  take  advantage  of  the  market  whichever  way  it 


38 


may  go.  If  it  advances  so  as  to  make  a  good  profit 
you  can  Call  the  stock.  Should  it  decline  you  can 
I'ut  it.  It  is  a  matter  of  indifference  to  you  whether 
it  goes  up  or  down.  A  person  may  be  entirely  unac- 
quainted with  stocks  and  be  living  thousands  ot  miles 
away  and  yet  know  that  he  has  two  chances  to  win  and 
only  one  to  lose.  He  can  send  us  the  money,  and  if 
he  does  not  know  which  stock  is  the  most  active  we 
can  make  a  selection  to  the  best  of  our  judgment. 
He  can  also  give  us  instructions  to  watch  the  market 
and  to  close  the  contract  at  a  favorable  opportunity. 
We  make  a  specialty  of  country  orders,  and  our 
knowledge  of  the  market  often  enables  us  to  give  ad- 
vice to  our  customers. 

Pacific  Mail  last  summer  was  selling  in  the  neigh- 
borhood of  50,  and  it  was  sailing  along  under  the 
most  favorable  auspices.  Several  new  steamers  were 
in  process  of  completion.  The  business  of  the  com- 
pany was  largely  on  the  increase.  Under  these  cir- 
cumstances Pacific  Mail  found  ready  purchasers.  But 
in  an  evil  hour  the  subsidy  job  came  on  the  boards, 
the  stock  declined  and  is  now  selling  at  32.  This 
stock  has  fluctuated  very  rapidly  the  last  two  months, 
and  Double  Privileges  have  invariably  paid  excell- 
ent profits.  At  40  it  was  thought  by  many  to  have 
touched  bottom,  but  from  information  in  our  posses- 
sion we  urged  our  customers  to  purchase  Double 
Privileges  instead  of  Calls.  Those  who  followed  our 
advice  did  well.  A  Spread  on  Pacific  Mail  when  it 
was  selling  at  40  would  read  as  follows : 


39 


New  York,  January  \Oth,  1875. 

The  bearer  may  Put  or  deliver  to  the  undersigned  500 
shares  of  Pacific  Mail  Capital  Stock,  at  39  per  cent,  par 
value,  any  time  within  30  days  from  date. 

Or  the  bearer  may  at  his  option  Call  on  us  for  100  shares 
of  the  above  named  stock,  at  41,  any  time  during  said  thir- 
ty days. 

All  dividends  paid  during  that  time  go  with  the  stock. 
Expires  February  \0th,  1875. 

Signed,  

All  that  the  stock  declined  below  39  would  be  the 
profit  at  the  time  the  contract  was  closed.  And  all 
above  41  would  be  gain  in  the  same  manner. 
Orders  sent  to  us  are  promptly  executed,  money  ac- 
knowledged, contract  secured,  and  our  action  report- 
ed by  return  mail  or  telegraph. 

Western  Union,  on  the  3d  of  September,  1873,  was 
selling  at  92,  and  everything  looked  bright  and  pros- 
perous. Holders  of  the  stock  were  confident  that 
the  flourishing  condition  of  the  company  would 
attract  new  purchasers,  and  thereby  enhance  its 
value.  But,  alas  !  the  panic  came  and  their  hopes 
vanished  "  like  the  baseless  fabric  of  a  vision,"  and 
in  less  than  three  weeks  it  was  54.  Now,  supposing 
you  had  a  Spread  on  500  shares  of  Western  Union  at 
that  time  and  Put  the  stock  at  54,  the  profit  on  ^1,000 
investment  would  have  been  nearly  $17,000,  and  we 
would  have  sent  you  a  check  for  that  amount.  Old 
and  experienced  operators  invariably  adopt  this  plan. 
New  beginners  are  very  apt  to  be  bulls,  but  experience 
shows  that  under  apparently  favorable  circumstances 


40 


stocks  will  decline.  If  you  have  a  Double  Privilege 
you  are  sure  to  be  on  the  right  side.  It  costs  $212  50 
for  100  shares  on  any  stock. 

$tratUUf  tfOtttrart  is  a  Double  Privilege  issued 
at  the  selling  price  of  the  stock  and  costs  from 
$250  to  $350  for  100  shares,  according  to  the  stock. 
This  form  of  contract  is  especially  beneficial  when 
used  as  margin.  If  you  ordered  a  Straddle  on  Union 
Pacific  when  it  was  selling  at  40,  the  contract  would 
run  as  follows  : 

New  York,  February  23d,  1875. 

The  bearer  may  put  or  deliver  to  us  1 00  shares  of  the  capi- 
tal stock  of  the  Union  Pacific  Railroad  at  40  per  cent.,  par 
value,  any  time  within  30  days  from  d/ite. 

Or  the  bearer  may,  at  his  option,  Call  on  us  for  100 
shares  of  the  above-named  stock  at  40  any  time  within  the 
30  days. 

All  dividends  paid  during  that  time,  go  with  the  stock. 
Expires  March  25,  1875. 

Signed  

!|||h0  pay$  thf  profits  on  £MviUflf$.—  The  question 
'vP  will  naturally  arise,  how  is  it  that  these  Privil- 
eges are  issued,  seeing  that  the  maker  is  liable  to 
pay  out  large  profits  to  the  holder?  We  will  explain 
it  so  that  it  will  be  easily  understood.  The  capital- 
ist, in  order  to  have  easy  control  of  his  money,  invests 
it  in  the  purchase  of  stocks  when  he  considers  they 
are  cheap.  Having  1,000  shares  or  5,000  shares  of 
Pacific  Mail,  we  will  say,  he  is  willing  to  sell  Calls  on 
a  portion  of  his  stock,  because  he  makes  sure  of  re- 


41 


ceiving  the  i  per  cent,  premium  paid  for  the  Privil- 
ege. If  he  makes  that  and  nothing  more  he  is  satis- 
fied, for  all  he  wants  is  to  be  able  to  make  a  little 
more  than  common  interest  on  his  money.  Well,  he 
issues  500  share  Calls  on  Pacific  Mail  at  34!  per  cent, 
above  the  market.  Should  it  go  to  40,  the  holder 
presents  his  contract  and  claims  the  stock  at  34 ;  sell- 
ing it  out  again  in  the  market  at  40,  thus  realizing 
6  per  cent.,  or  $3,000  on  500  shares.  The  maker  of 
the  contract  having  given  only  32^  for  the  stock, 
which  you  Call  at  34,  makes  a  profit  of  i-J-  per  cent, 
besides  1  per  cent,  premium  paid  to  him  in  the  first 
instance.  So  that  it  will  readily  be  seen  that  he 
loses  nothing ;  on  the  contrary,  he  actually  makes 
$1,250  by  the  transaction. 

Another  large  operator  sells  short  the  same  stock 
at  32^,  no  matter  what  his  reason  may  be  for  doing 
so.  One  man  buys  a  stock,  another  sells  it,  for  if  a 
stock  is  sold  there  must  be  a  buyer.  In  this  case  he 
issues  Puts  on  Pacific  Mail  at  31-^  and  receives  the  1 
per  cent,  premium.  If  Pacific  Mail  declined  to  25,. 
the  holder  of  the  Privilege  could  go  in  the  market, 
buy  the  stock  at  25,  and  then  Put  it,  that  is,  sell  it,  to 
the  maker  of  the  privilege  at  31^,  making  a  profit  of 
6£  per  cent,,  or  $650  on  100  shares.  The  maker  of 
the  contract  would  not  have  to  pay  this  money,  he 
would  simply  buy  the  stock  from  you  at  31^  to  cover 
his  short  sale  at  32^,  making  1  per  cent,  profit,  and 
also  the  1  per  cent,  premium  received  in  the  first 
instance.  "If,  instead  of  Putting  the  stock,  you  should 
reqxiire  the  difference  of  6£  per  cent,  be  paid  in  cash, 


42 


of  course  the  maker  of  the  Privilege  would  buy 
Pacific  Mail  at  25,  the  market  price.  You  would 
make  $650,  he  would  make  $200. 

It  will  thus  be  seen  that  if  the  holder  gains,  the 
maker  gains  also.  This  also  explains  how  we  are 
enabled  to  sell  Double  Privileges.  It  is  difficult  to 
obtain  both  a  Put  and  a  Call  from  the  same  party, 
but  we  can  always  negotiate  a  Put  from  one  and  a 
Call  from  another,  which  protects  us  on  both  sides, 
for  if  the  stock  declines,  we  Put  it  to  the  maker  of 
the  contract,  and  if  it  should  advance,  we  Call  it  in 
the  same  manner,  paying  the  profit  in  either  case  to 
our  customer,  less  commission. 

miiufl  and  belting  §torh$  3tpht$t  2riviUflf$. 

Our  treatise  on  stock  operations  would  not  be 
complete  without  showing  the  method  of  using  Puts 
and  Calls  as  margin.  The  advantage  of  this  is  two. 
fold,  as  wc  will  explain.  One  of  our  customers  sent 
us  $2 1 2.50  for  a  Spread  on  Pacific  Mail.  We  secured 
it  for  him  at  38  for  the  Put  and  40  for  the  Call. 
When  the  price  reached  41  we  sold  100  shares  for 
his  account — that  is,  we  sold  it  short.  P.  M.  then 
declined  to  39.  when  we  bought  in  the  100  shares, 
that  is,  we  covered  the  short  sale  at  a  profit  of  $200. 
The  stock  declined  still  further,  and  enabled  us  to 
buy  100  at  37.  Had  the  short  sale  remained  longer, 
of  course  he  would  have  made  $400  instead  of  $200, 
but  we  were  anxious  to  secure  him  about  the 
amount  paid  to  us  for  the  Privilege,  and  so  took  the 
the  first  opportunity  to  do  that.    After  buying  at 


43 


37  the  stock  took  an  upward  turn,  and  we  sold  out 
at  38^.  It  declined  again  to  37^,  when  we  bought 
another  100  shares  and  sold  at  39.  These  transac- 
tions being  now  closed,  the  Privilege  remained  intact 
and  ready  to  be  used  again  in  like  manner.  Before 
the  expiration  of  the  thirty  days  P.  M.  again  declined 
to  36,  when  we  closed  the  contract  by  Putting  the 
stock  at  a  profit  of  $300. 

The  following  is  a  copy  of  the  account. 

To  Spread  on  100  P.  M.  I  Cr. 

38x40                       $212  50  I 

Bought  100  P.  M.  at  39  3.000  00  I  By  cash   $212  50 

Bought  100  P.  M.  at  37  3,700  00  !  Sold  100  P.  M.  at  41..  4,100  00 

Bought  100  P.M.  at  37^  3  725  00  Sold  100  P  M.  at  38* .  3,850  00 

Bought  100  P.  M.  at  36  3,600  U0  Sold  100  P.  M.  at  39..  3,900  00 

%  commission  buying  100  P.  M.  Put  at  38. . .  3,800  00 

and    selling  *  800 

shares   100  00 

Profit    025  00 

$15,862  50  •  $15,862  50 

The  foregoing  example  will  serve  to  illustrate  the 
advantage  of  a  Spread.  A  person  holding  one  of 
these  contracts  can  buy  and  sell  a  stock  with  impu- 
nity,  with  the  certain  knowledge  that  if  he  makes 
nothing  at  all  by  operating,  he  can  only  lose  $212.50, 
while  he  may  often  make  $1,000.  If  an  active  stock 
is  selected  he  can  always  reckon  on  a  good  fair  profit 
on  the  investment,  When  requested  we  will  make 
selections  of  such  stocks  as  we  think  most  likely  to 
pay  the  best.  At  the  same  time  we  are  always  ready 
to  act  upon  the  instructions  of  our  customers,  and 
report  our  action  promptly  by  mail. 

Stocks  cannot  be  bought  against  Privileges  in  less 
than  100  shares.    If  you  simply  wish  to  buy  a  stock 


44 


you  can  use  a  Put  contract  as  margin,  costing  $106.25. 
When  the  stock  sells  below  the  price  named  in  the  j 
Put  contract  we  will  buy  the  stock  and  guarantee! 
you  against  loss,  for  in  case  it  declined  you  would 
make  on  the  Put,  which  would  offset  the  loss  on  the 
purchase.  By  having  the  Put,  you  are  always  insur- 
ed against  further  liability. 

The  Call  can  be  used  as  margin  when  you  only 
want  to  sell  a  stock  short,  and  the  contract  acts  as  a 
protection  in  case  of  an  advance  in  price.  By  oper- 
ating against  Puts,  Calls,  Spreads  and  Straddles,  you 
assume  no  liability  beyond  the  amount  paid  for  the 
Privilege,  while  if  the  stock  favors  you  the  profit  is 
unlimited. 

An  ordinary  operation  on  the  old  plan  of  margins 
would  leave  the  operator  at  the  mercy  of  the  mar- 
ket, that  is,  if  he  bought  a  stock,  say  Erie,  at  34  and  it 
declined  to  17  which  was  the  case,  he  would  assume 
the  risk  and  liability  of  losing  17  per  cent,  which  on 
one  hundred  shares  would  be  $1700  loss.  Now  see 
what  a  different  position  the  holder  of  a  Double 
Privilege  would  be  in.  He  spends  $212  50  for  a 
Spread  and  takes  no  further  liability.  He  has  no 
anxiety  in  watching  the  market,  for  he  can  give  us 
his  instructions  to  do  it  for  him.  All  he  has  to  do 
is  to  make  operations  against  the  Privilege  according 
as  the  market  will  afford  opportunities.  If  success- 
ful in  making  the  turns  of  the  market  he  has  equal 
advantage  with  the  margin  operator  but  none  of  the 
worry  and  risk. 


45 


GOLD  PRIVILEGES. 

Old  ^rivi\tp$—  Gold  does  not  fluctuate  so  much 
as  stocks,  so  the  price  of  Gold  Privileges  is  only 
half  as  much  as  Stock  Privileges.  $10,000  gold  is 
equal  to  100  shares  of  stock.  The  premium  on  a  Put 
or  Call  on  gold  is  \  per  cent,  and  commission,  which 
is  $53-13  on  $10,000.  A  Spread  is  issued  at  i  per 
cent,  distance  from  the  selling  price  of  gold,  a  Put  at 
f ,  and  a  Call  at  f  per  cent,  from  market. 

During  the  month  of  January  and  February  gold 
was  very  active,  having  advanced  from  11  if  to  1 1 5^-. 
We  can  operate  by  buying  and  selling  in  the  market 
against  Gold  Privileges  the  same  as  stocks. 


A  Spread  on  $100,000  gold  costs   $1,062  50 

A  Put  or  Call  on    100,000  gold  costs   531  25 

A  Spread  on      50,000  gold  costs   531  25 

A  Put  or  Call  on      50,000  gold  costs   265  63 

A  Spread  on     20,000  gold  costs   212  50 

A  Put  or  Call  on     20,000  gold  costs   106  25 

A  Spread          on      10,000  gold  costs   106  25 

A  Put  or  Call  on     10,000  gold  costs   53.  J5 


This  branch  of  speculation  is  very  important,  and 
is  again  attracting  considerable  attention.  We  have 
customers  who  have  realized  two  to  three  hundred 
per  cent,  net  profit  during  30  days.  The  advantage 
which  an  operator  has,  is  that  a  combination  to  put 
up  gold  is  easier  discovered,  and  the  certainty  oi 
making  a  profit,  on  both  rise  and  decline,  is  rendered 
much  greater  than  on  stocks,  for  the  reason,  a  clique 
or  corner  in  gold  cannot  last  generally  over  30  days. 


40 


INSTRUCTIONS 

FOR 

ORDERING  PRIVILEGES. 


l^fAll  orders  sent  by  mail  must  be  accompanied 
by  the  cash,  either  in  registered  letter,  by  Postal 
Money  Order,  Bank  Draft  or  Express. 

tSI^Urgent  orders  may  be  sent  by  telegraph,  in 
which  case  the  money  should  be  deposited  at  the 
branch  office  of  the  Western  Union  Telegraph  Com- 
pany  where  you  reside,  when  the  amount  will  be 
transferred  to  us  by  the  Company  at  New  York,  and 
a  telegraphic  answer  returned  immediately  the  order 
is  executed. 

f^gPYVhen  orders  are  prepaid,  receipts  will  be  sent 
by  return  mail  same  day  as  received,  or  the  contracts 
delivered  to  authorized  agents. 

tdslPIf  requested,  we  will  make  investments  in 
Privileges,  selecting  such  stocks  as  we  believe  will 
be  most  active.  Our  experience  often  enables  us  to 
give  valuable  suggestions,  and  we  take  pleasure  in 
furnishing  our  customers  with  all  information  in  our 
power  tending  to  promote  their  interests. 

{jgrThose  who  are  undecided  which  way  the  mar- 
ket will  go,  should  always  order  a  Put  and  a  Call  on 
the  same  stock,  for,  whichever  way  it  varies,  they 
are  certain  to  make  a  profit.  This  is  called  a  Spread, 
and  costs  $212  50  for  100  shares,  $106  25  for  50 
shares,  and  $53  13  for  25  shares. 


47 


tgHTTor  the  benefit  of  those  living  a  distance  from 
New  York,  we  will,  whenarequested,  hold  Privileges,, 
and  endeavor  to  close  them  at  the  most  favorable 
opportunity.  Those  wishing  contracts  closed  in  this, 
manner  should  state  their  views  as  regards  profits, 
to  guide  us  as  far  as  possible  in  carrying  out  their 
instructions  with  satisfaction  to  all  concerned. 

I^^When  the  profit  on  a  Privilege  is  paid,  the 
contract  must  be  surrendered  to  us,  and  returned  in 
every  instance  without  fail,  to  enable  us  to  collect 
counter  claims. 

HjgrThose  living  outside  cities,  and  not  having 
facilities  for  watching  the  price  of  stocks,  bonds,  &C.,. 
should  subscribe  for  the  Wall  Street  Review,. 
which  we  publish  every  Wednesday.  We  shall  be 
happy  to  furnish  the  quotations  for  stock  privileges,, 
or  report  the  state  of  the  market  at  all  times. 

USiTTn  corresponding  be  careful  to  inform  us  how 
your  letters  should  be  addressed,  giving  name,  resi- 
dence, town,  county  and  State  as  plainly  as  possible,, 
to  facilitate  quick  despatch.  Delay  is  sometimes  oc- 
casioned by  failure  to  follow  this  rule,  and  that  is  our 
apology  for  making  these  remarks.  Letters  requir- 
ing answers  at  all  times  receive  our  prompt  attention.. 
All  we  ask  is  your  co-operation. 

fSf^All  correspondence  strictly  private  and  confi- 
dential. 

Address  orders  and  communications  to 

JOHN  H1CKLING  &  CO., 
72  Broadway, 

Nezv  York. 


48 


LIST  OTP  STOCKS 

DEALT  IN  AT  THE 

NEW  YORK  STOCK  EXCHANGE. 


ft  g,S    Albany  and  Susquehanna. 

ft'tf   £x   A  damn  Express 

y\m'  Ex  American  ExprcBB. 

A  DlSt  Tel  American  Di»trict  Tele-graph  Co. 

A!  *  P.'  P'd   Atlantic,  and  Pacific,  Prelerred. 

A.  &  T.  H  Alton  and  Ttrre  Haute. 

A  &  T  H  P'd  Alton  and  Terre  Haute;  Preferred. 

At   8c  P.  T  Atlantic  and  Pacific  Telegraph. 

jj.'w..."  Chicago  and  Northwestern. 

H'         p'fj  Chicago  ami  Northwestern,  Preferred. 

p!  [,."'  Chicago,  Kock  Inland  and  Pacific. 

C  &  A   *  Chicago  and  Alton. 

C.  C.  8c  I.  C.  Columbus,  Chicago  and  Indiana  Central. 

Q'  C    C  .  8t  I  Cleveland,  Columbus,  Cin.  anu  Indiana. 

Cieve.  8c  P.  Cleveland  and  Pittsburg. 

Con.  Coal.  Consolidation  Coal  Co. 

Cen.  P.   Central  Pacific. 

Can'  •  ■  •  Canton  Improvement  Co. 

g.  g,  Q  Chicago.  Burlington  &  Quincy. 

q[  qJt,  Cumberland  Coal  Company. 

D  '  L  8t  W   Delaware,  Lackawanna  &  Western. 

Qg|  *  '  .  .   Delaware  and  Hudson  Canal  Co. 

F.  Erie  Railway. 

E    P'd  '-'-  Erie  Hallway,  Preferred. 

Q'  8c  S-  Gol(i  and  Stock  Telegraph  Co. 

H   8c  St  jo  Hannibal  and  St.  Joseph. 

H  8c  St-  Jo    P'd  Hannibal  and  St.  Joseph,  Preferred. 

Ill   Cen  ■  ■   Illinois  Central. 

Jcl'fcT   Kansas  and  Texas. 

U  '  S  •'•••■••■•  •  Lake  Shore  and  Michigan  Southern. 

|yj   Q  .'  Michigan  Central. 

IVlb   PaC.  " issouri  Pacific. 

•yirj'  '  Maryland  Coal  Co. 

M  L.  8c  M.  Mariposa  Laud  and  Mining  Co. 

M   8c  E.-  ■  ■  Morris  and  Essex. 

Mil   &  St  P  Milwaukee  and  St.  Paul. 

Mil   &  St  P    P'd  Milwaukee  and  St.  Paul,  Preferred. 

N   V  Cen  ••'•'  ■'  New  york  Central  and  Hudson 

N    Y    8c  N.  H.  New  York,  New  Haven  and  Hartford 

H  ar-  ■  '■•••'   Kew  Vork  and  Harlem 

N  J  Cen  New  Jersey  Central 

q'  £  |y)  Ohio  and  Mississippi 

O   8c  M  P'd  Ohio  and  Mississippi,  Preferred. 

P'  M  .  -'••■••   Pacific  Mail  Steamship  Co. 

p'an  ....   Panama  Kailroad 

P   St  F.  W.   Pittsburg  and  Fort  Wayne. 

P  C  •.'•••'  Pennsylvania  Coal. 

q'u  ffl  '  Quicksilver  Mining  Co. 

Qu.  M.,  P'd  Quicksilver  Mining  Co.,  Preferred. 

p   «(g   Rensslaer  &  Saratogo. 

Iron  M--  -  St,  Louis  and  Iron  Mountain. 

Sd  IVI  Coal    Spring  Mounta:n  Coal. 

T    W  •  Toledo,  Wabash  &  Western. 

y'  §  '    United  States  Express. 

ll"  p"    '   Union  Pacific. 

w  p   Wells.  Fargo  &  Co.  Express. 

yy'  ij  Western  Union  Telegraph  Co. 


49 


RAILROAD  STATISTICS. 


Capital  No.  of 

Stock.  Miles. 

Canton  Land  Company..   $731,250   

Cleveland  and  Pittsburg...   11,236,150  225 

Columbus,  Chicago  and  Indiana  Central   11,328,568  587 

Chicago  and  North we'stern  Common  15,000,000  1,459 

do.  do  Preferred  1,000,000   

Chicago,  Rock  Island  and  Pacific.   24,999,500  957 

Delaware,  Lackawanna  and  Western   23,500,000  618 

Erie  Railway  _  -  Con.mon  78,000,000  1,033 

do  Preferred  8,536,910   

Hannibal  and  St.  Joseph              Common      9,167,700  275 

do.  do   Preferred  5,087,224   

Lake  Shore  and  Michigan  Southern  _.  50,000,000  "'1,136 

Milwaukee  and  Saint  Paul...  Common  15,398,561  1,395 

do.  do.   Preferred  12,274,483   

New  Jersey  Central   20,000,000  291 

New  York  Central  and  Hudson    89,428,300  1,032 

New  York  and  Harlem                                   9,000,000  132 

Ohio  and  Mississippi                      Common  20,000,000  393 

do.  do.    Preferred  4,030,000 

Pacific  Mail  Steamship  Co   20,000,000 

Panama  Railroad                                           7.000,000  47 

Quicksilver  Mining  Co  Common  4,291,300 

do.         do  ......Preferred  5,708,700 

Toledo,  Wabash  and  Western  Common  15,000.000  905 

do.         do.  do.     ...Preferred  1,000,000 

Union  Pacific  R.  R   30,745,000  1,039 

Western  Union  Telegraph  Co    41,073,410 

The  above  shows  the  amount  of  capital  and  number  of  miles  of 
some  of  the  principal  Railroads. 


50 


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52 


BLACK  FRIDAY, 

OR, 

TEE  GOLD  CONSPIRACY  OF  SEPTEMBER  24,  1869. 


A  conspiracy  was  iormed  in  the  latter  part  of  the 
summer  of  1869  to  corner  gold.  The  leaders  were 
Jay  Gould,  James  Fisk,  Jr.,  Henry  N.  Smith  and 
William  Belden,  who  planned  and  carried  on  the 
campaign  with  great  vigor  and  boldness.  At  the 
time  these  parties  began  to  operate  in  gold  there  was 
probably  not  more  than  twenty  millions  in  the  market. 
There  was  about  ninety  millions  in  the  hands  of  the 
Government,  of  which  some  twenty  millions  were  on 
special  deposit,  represented  by  gold  certificates  float- 
ing in  banks  and  in  the  hands  of  the  people.  Mr. 
Boutwell  was  selling  gold,  a  million  at  a  time,  in 
pursuance  of  a  plan  advertised  and  well  known. 
Then  it  would  seem  that  the  clique  had  received  an 
assurance  from  some  source  emanating  from  Wash- 
ington that  the  action  of  the  Treasury  would  not  be 
deviated  from.  The  name  of  General  Butterfield 
was  unpleasantly  mixed  up  in  the  affair,  but  he  de- 
nied the  "  soft  impeachment,"  of  course.  Be  this  as 
it  may,  the  clique  bought  up  all  the  gold  and  held  the 
monopolv  in  the  market.  It  so  happened  that  there 
was  a  large  number  of  operators  who  had  borrowed 


53 


gold,  believing  it  would  fall ;  when  they  could  buy  it 
back  for  delivery  at  lower  figures.  Everything 
tended  to  lower  the  price  of  gold,  and  many  import- 
ers went  Short,  in  view  of  getting  it  cheaper  when 
the  time  came  to  pay  duties.  About  the  middle  of 
September  gold  was  selling  at  r 33^. 

On  the  morning  of  the  22d  of  September  the  clique 
were  masters  of  the  situation.  In  the  words  of  one 
of  their  number,  they  held  the  market  in  the  "  palm 
of  the  hand."  The  gold  was  partly  loaned  to  the 
bears,  and  partly  carried  by  banks  and  bankers  for 
the  clique  on  margins.  On  the  evening  of  that  day 
a  special  meeting  was  held  in  the  back  office  of 
William  Heath  &  Co.,  and  a  grave  debate  ensued. 
The  clique  could  have  put  gold  to  200  or  higher,  (pro- 
viding they  could  have  carried  it  along  without  lend- 
ing it),  compelling  the  shorts  to  cover  at  immense  loss. 
But  at  such  an  absurd  premium  how  could  they  have 
found  a  market  for  twenty  or  thirty  millions  ? 

On  the  evening  of  the  23d,  a  secret  meeting  was 
held,  at  which  it  was  determined  to  "  cap  the  climax  " 
on  the  next  day.  The  clique  owned  and  held  con- 
tracts for  about  $80,000,000,  or  four  times  the  amount 
in  the  city.  How  the  movement  should  culminate 
became  the  knotty  problem  to  solve.  If  it  was  go- 
ing to  be  difficult  for  the  bears  to  buy  gold,  it  was 
equally  difficult  for  the  clique  to  sell.  If  the  bears 
required  fifty-five  millions  to  fulfill  their  contracts, 
the  clique  required  a  market  for  eighty  millions. 

The  next  day,  the  24th,  the  crisis  came.  Rumors 
had  been  circulated  that  gold  would  reach  200  that 


54 


day.  The  first  operation  in  the  morning  was  made 
by  Albert  Speyer,  the  broker  acting  for  Fisk  and 
Gould.  He  was  ordered  to  put  it  up  sharply  and 
suddenly,  and  he  bid  145,  150  and  160,  reaching  the 
latter  figures  at  1 1  A.  M. ;  the  clique,  at  the  same 
time,  directing  other  brokers  to  advise  the  shorts  to 
settle  with  them,  under  threats  of  putting  gold  up  to 
200  before  night. 

Now,  a  Wall  Street  broker  will  do  anything  rather 
than  lose  his  seat  at  the  board,  which  would  be  the 
result  of  his  failing.  Therefore,  many  took  the  ad- 
vice, and  settled  at  150  with  one  of  the  clique, 
while  the  broker  of  another  was  bidding  155  in  the 
Gold  Room. 

After  settlement  had  been  established  as  the  order 
of  the  day,  there  was  no  longer  any  motive  for  keep- 
ing gold  up,  and  Smith's  brokers  were  sent  to  sell 
all  the  gold  they  could  ;  and  this  was  going  on  while 
others  of  the  clique  were  bidding  160  for  it,  the 
operations  of  each  party  being  kept  distinct.  Speyer, 
for  Fisk  &  Gould,  kept  bidding  160;  other  brokers 
for  Smith,  Gould,  Martin  &  Co.,  were  selling  at  140, 
and  it  was  not  until  gold  could  have  been  had  at  133, 
that  Speyer  realized  he  was  being  slaughtered  by  his 
principals,  and  ceased  to  bid.  He  had  then  bought 
26  millions. 

The  scene  at  the  entrance  to  the  Gold  Room  was 
one  of  the  wildest  excitement.  Here  was  a  jubilant 
group — here  one  with  rueful  countenances.  Between 
twelve  and  one  o'clock  a  lively  demand  for  margins 
precipitated   the  final  catastrophe.    The  brokers 


55 


were  called  upon  by  the  parties  of  whom  they  had 
bought  gold  to  fulfill  their  contracts,  and  they  hasten- 
ed to  confer  with  their  principals.  The  principals 
had  no  intention  of  carrying  out  the  arrangement, 
and  fled  the  street. 

The  Gold  Exchange  Bank  attempted  to  clear,  but 
after  struggling  for  some  time,  gave  it  up.  The 
transactions  had  been  so  enormous  that  the  balances 
were  unprecedentedly  large,  and  thus  both  currency 
and  gold  were  locked  up  in  the  Bank.  Money  was 
scarce  at  the  time.  The  banks  were  hard  pressed. 
The  West  was  drawing  heavily  to  move  the  crops, 
and  thus  this  sudden  withdrawal  of  money  from  cir- 
culation led  to  one  of  the  worst  panics  Wall  Street 
has  ever  seen.  Its  severity  may  be  imagined,  when 
it  is  stated  that  money  was  loaned  at  250  per  cent., 
and  stocks  fell  from  20  to  50  per  cent.  Several 
of  the  largest  banks  suspended  payment,  and  those 
who  outlived  the  storm  lost  all  they  had.  Not 
even  in  (864  was  the  ruin  so  wide  spread. 

The  gold  conspirators  were  the  only  persons  in  the 
street  who  had  made  money  out  of  the  general  des- 
olation. They  had,  however,  to  conceal  the  evidence 
of  their  work,  and  Belden's  books  were  packed  and 
carted  away. 

At  last  the  final  stroke  was  given  by  Smith,  Gould, 
Martin  &  Co.,  and  their  brokers  ;  enjoining  the  Gold 
and  Stock  Exchange  from  using  their  machinery  to 
enforce  the  fulfillment  of  the  contracts  of  the  24th  of 
September,  and  the  Gold  Exchange  Bank  was  thrown 
into  the  hands  of  a  receiver. 


56 


REMINISCENCES  OF  WALL  STREET. 
IjjjcmitmrfttCfis  oi  Watt  £tmt— in  1835  Wail 

C&l  Street  speculation  made  its  first  greatest  sensa- 
tion. The  famous  Morris  Canal  corner  put  the  stock 
from  almost  nothing  to  185  at  a  jump.  This  hap- 
pened in  January,  and  in  July  Harlem,  with  a  capital 
stock  of  only  $7,000,  forgot  integrity  so  seriously  as 
to  sell  64,000  shares.  Bartow,  a  cashier  of  Albany, 
troubled  the  street  with  an  "  irregularity  "  to  the  ex- 
tent of  $130,000.  Wilding,  a  cockney,  disappeared 
from  the  street  with  $45,000  in  shares,  involving  some 
members  of  the  Legislature,  and  Benjamin  Rathbun, 
of  Buffalo,  capped  the  climax  by  failing  with  half  his 
liabilities  in  forged  bills — only  a  $3,000,000  failure 
at  that.  In  those  days  men  spoke  with  bated  breath 
of  a  certain  Jew  operator  with  bank  deposits  ot 
$500,000,  and  a  whole  million  of  United  States  funds 
was  blocked  in  a  day,  and  became  town  talk.  The 
Stock  Exchange  mustered  fifty-two  members,  and  was 
so  virtuous  as  to  twice  refuse  to  enforce  contracts  in 
the  case  of  brokers  caught  in  a  "corner."  This 
was  the  period  about  the  panic  of  1837  in  Wall 
Street.  The  daily  credits  and  deposits  in  this 
market  now  are  hundreds  of  millions,  and  the  par 
value  ot  annual  sales  of  stocks  are  computed  at  $25, 
000,000,000,  $1,700,000,000  having  gone  through  the 
stock  mill  in  a  week  alone — in  the  height  of  the 
Union  Pacific  corner.    Speculations  which,  in  1837, 


5  V 

would  have  destroyed  the  finance  oi  the  nation  now  go 
through  the  great  Stock  Exchange  in  ail  hour,  and 
no  one  feels  it,  but  here  and  the  c  an  unfortunate. 

Here  we  have  now  1,100  member?!  of  the  Stick 
Exchange  executing  the  orders  from  every  quarter 
of  the  globe.  The  entrance  to  the  great  pandemo- 
nium is  guai  ded  bv  Cerberus,  a. id  you  might  as  well 
try  to  reach  the  Kabla  at  Mecca  without  swearing 
by  the  prophet  as  to  pass  "Peter"  without  intro 
duction  by  a  member. 

The  roar  of  the  ocean  in  a  storm,  the  shouts  of  r  i 
Astor  Place  mob,  Niagara  with  it  "  ''ecp  'hander-- 
none  of  them  convey  to  you  the  (  xact  "iiceness  of  the 
swelling  sound  as  it  strikes  your  eai  on  first  en- 
tering the  Stock  Exchange.  Gath.  e;  in  knots  of 
black  surgy  masses  of  humanity  are  the  brokers, 
messengers  are  flh  ing  in  all  direct  »r  ,  jokes  are 
mingled  with  a  maddened  earnestness,  .veak  voices 
and  l'on-like  roars.  Sharp  tenor,  si  ril!  and  hoarse 
howiirgs  of  the  pages,  wild  gesticulations,  gray- 
haired  mad-men  and  lunatic  faces,  nai  disheveled 
— men  fiercely  whirling  men  i  round  to  for*  c 
attention — shouts  a  thousand  times  mo  e  peremp- 
tory and  pleading  than  all  the  hackmen  at  one 
of  our  railroad  stations  could  attempt,  and  yet 
out  of  it  all  comes  order,  exactness  and — millions 
of  dollars  to  somebodj'.  This  is  pi  picture  oi 
the  American  Bourse  on  a  field  day  in  Erie  or  Lake 
Shore.  The  Commodore's  "Pups,"  as  Vanderbilt's 
brokers  are  called,  are  in  the  citadel  of  citadels, 
the  cockpit  of  the  Exchange.    The  Gould,  Arnesand 


Union  Pacific  party  are  on  every  side,  so  thoroughly 
interspersed  through  the  whole  mass,  that  the  im- 
pression is  created  that  Gould  is  everywhere.  Gould 
is  closeted  at  Charley  Osborn's.  and  the  thing  to 
be  done  is  to  make  Vanderbilt  think  he  is  going  for 
Lake  Shore  and  Erie  at  the  same  hour.  The  grass- 
hopper raid  in  Missouri  and  Kansas  has  been  enlarged 
into  a  vast  army  movement  from  St.  Paul  to  Little 
Rock,  a  host  marching  eastward  in  one  unbroken 
line,  destroying  every  living  thing  in  its  path.  The 
$4,000,000  indebtedness  of  Erie  annually  for  interest 
has  been  paraded  everywhere.  President  Jewett's 
report  has  been  served  up  in  two  thousand  news- 
papers, and  cabled  to  London.  Wm.  Heath,  Gould's 
trusty  slave,  has  taken  his  station  at  the  European 
end  of  the  cable,  ready  at  a  given  signal  to  put  down 
Erie  on  the  European  Bourses.  Rumors  of  a  receiv- 
ership for  Erie,  of  trouble  among  employees  in  Erie 
machine  shops  to  get  their  pay,  and  of  the  refusal  ot 
the  President  of  Hudson  Canal  Co.  to  lend  Erie  money 
on  her  coal  lands,  have  been  faithfully  reported  in  the 
aforesaid  papers.  At  the  first  shot  2,300  shares  are 
flung  at  the  ravenous  wolves  in  the  bull  interest — 
down  she  goes.  She  passes  30  into  the  20's,  one- 
eighth,  one-quarter,  and  even  one-half  at  a  jump. 
The  howling  of  pandemonium  let  loose  now  begins. 
The  bulls  have  it.  She  rises  clear  back  into  the  3o's 
again,  when  500,  1,000,  2,000,  3,000,  and  hundreds 
and  thousands  of  all  denominations  are  hurled  at  the 
bulls,  and  she  sinks  again  down,  down,  down,  to  28, 
27,  26,  25 — recovers,  sinks,  and  settles  at  last  at  21, 


59 


and  the  day  closes.  Trinity  chimes  out  "  Old  Lang 
Syne,"  and  the  memory  and  murder  of  Jas.  Fisk  is 
vindicated.  What  was  done  with  Erie,  was  also  done 
with  Lake  Shore,  and  thus  this  modern  Napoleon 
fights  an  Austerlitz  and  a  Prague  at  the  same  time. 

This  is  Wall  Street  as  it  is  when  contrasted  with 
what  it  was  forty  years  ago. 

SOUTH  SEA  BUBBLE. 

The  accounts  given  in  "  Anderson's  History  of 
Commerce "  of  the  financial  delusions  in  England 
some  250  years  ago,  serve  to  show  to  what  degree  of 
absurdity  the  mania  for  speculation  may  be  carried. 
Commencing  with  the  original  South  Sea  Company, 
there  were  started  in  London  some  200  joint  stock 
schemes,  many  of  which  were  subscribed  for  without 
any  certain  knowledge  of  their  definite  objects.  The 
money  called  for  by  these  projects  amounted  to 
^300,000,000 — more  than  the  value  of  all  the  land  in 
Great  Britain.    Such  was  the  rush  of  investors  that 

"  PRIVILEGES  " 
for  subscribing  were  sold  for  £jo  each.  "  Puts  and 
Refusals "  were  sold  in  vast  amounts.  As  soon, 
however,  as  the  big  guns  were  fired  all  ended  in 
smoke.  The  long  heads,  like  Sir  Robert  Walpole 
and  Alexander  Pope,  began  to  realize  when  they 
could  make  a  thousand  per  cent.,  and  that  brought 
the  people  to  their  senses,  and  the  mania  for  realizing 
set  in.  This  brought  prices  down  with  the  same 
rapidity  as  they  had  previously  risen,  transforming 
those  paper  fortunes  into  nothingness. 


00 


REPRESENTATIVE  MEN 

0*  WALL  STREET. 

fjfltttttttffo?*  i(Jit!t'!rrHt  owns  Harlem,  Centra!,  Hud 
^Vson  River,  Lake  Shore  in  part,  and  other  enter- 
prises, and  i 3  wort  h  sonic  sixty  to  one  hundred  mill- 
ions, of  which,  probably,  nine-tenths  was  made  in 
stock  speculation?  rive  millions  and  over  in  one 
Corner  i?  !  lem 

"  Commodore  Vanderbilt,  I  wish  your  daughter  in 
marriage." 

"  I  ley  ?"  c;uoth  the  money  king. 

"  I  wan:,  your  daughter." 

"  You  mean  you  want  my  money?"  growled  Van 
derbilt,  s<  ated. 

"  You  and  your  daughter  be  d — d'"  said  the  young 
lawyer,  leaving  the  room. 

"  Hold  on,"  said  Vanderbilt,  raising  himself  to  his 
feet,  and  Looking  suave  and  paternal.  "  I  rather  like 
you.  I  didn't  say  you  should  not  have  my  daughter. 
You  may  have  her.    f  rathe-  like  you,  young  man." 

Clark  never  got  much  of  the  Commodore's  money* 
it  is  .said  Vanderbilt  evWfc?  used  Clark  one  day,  and 
his  son-in-law  lost  thousands  on  thousands.  So  ho 
boldly  toll  his  father-in-law  what  bethought  of  him, 
and  after  r  time  the  losses  were  made  good. 

Even  William  Vanderbilt,  the  Commodore's  pet, 
did  not  escape.    One  day  his  father  said  to  him  : 

"Sell  Hudson,  William." 


6 1 

"  Thank  you,"  said  the  con. 

Nevertheless,  William  concluded  to  look  around 
him.  The  stock  ?eemed  remarkabh  steady.  He 
discovered  by  peculiar  ways,  that  his  father  was  buy 
ino;  quietly.  William  covered  his  movements,  and 
followed  suit.  Twenty-six  per  cent,  profit,  ciear,  was 
the  result. 

When  the  day  closed,  the  Commodore  rode  round 
to  the  son's  office. 

"  Well,  William,  how  much  did  you  lose?" 

"  I  went  in  at  i  ic  on  ic,ooo  shares,  that  makes  me 
$260,000." 

"  Very  bad  luck,  Vv  Winm,"  soothingly  ;  "  very  bad 
luck." 

"  But  then,  I  boug'ht,  you  know.' 

'•Hey?    What  sent  ,  ou  doing  that,  sir?" 

"  Why,  learning  thrt  vas  your  little  game,  1  con- 
cluded short  meant  '0  > g  a  ith  you. 

"  Ahem,"  croaked  t  he  lenignant  Commodore,  sctto 
voce,  buttoning  up  his  fu  overcoat. 

The  Commodore  hs.s  1  d  a  high  opinion  of  Will- 
iam ever  since  that. 

^Jll'tmi  %tt$  was  calk*  ITenr}.  the  Silent,  Ai 
&3  nineteen  he  tired  cf  h  -  apprenticeship  and  ran 
away  to  Rochester  ;  bejyas  as  a  boot-black,  bought 
uncurrent  money  between  the  United  States  and 
Canada.  Next  we  heai  of  him  as  opening  Keep's 
Hank.  In  1854,  worth  $6c  xjo,  he  came  to  Nevi 
York.  By  1859  he  waf  ri  1.  Michigan  Central, 
Chicago  and  Alton, and  CI  ive)  ad  and  Toledo  success- 
ively yielded  him  tribute.    P>  .  in  the  Great  October 

♦ 


62 


Pool  of  '67,  his  share  was  $1,500,000  in  eight  months. 
He  made  over  $10,000,000  in  Wall  Street,  and  died  in 
the  prime  of  life.  A  quiet,  monosyllabic  hero  was 
Henry  Keep,  the  companion  and  friend  of  Legrand 
Lockwood — par  nobile  fratrunt. 

who  has  speculated  in  every  con- 
flf/ceivable  line,  has  probably  made  several  millions 
in  the  Street. 

Morrissey  and  Prince  Erie  were  friends  till  Black 
Friday.  He  had  sold  to  Fisk,  believing  his  word. 
Fisk,  having  ruined  hundreds,  took  refuge  in  his 
citadel,  the  Grand  Opera  House.  Morrissey,  put- 
ting his  muscles  in  order,  repaired  to  that  stronghold. 
He  passed  the  cordon  of  Fisk's  body-guard,  and  stood 
in  the  presence  of  the  astonished  Prince. 

"  Well,  Morrissey,  what  is  it  ?" 

"Simply  your  check,  certified,  for  $83,000  in  that 
little  matter  of  " 

"  I  never  bought  that  gold.  It's  only  a  law  suit  any 
way." 

"  Bah  !  We  are  not  going  to  law,"  said  the  Prince 
of  the  P.  R.,  tightening  his  fist.  "  Pay  me  that  money 
without  more  bother." 

"  See  my  lawyer,"  stammered  Fisk. 

"  Not  at  all ;  your  signature  is  what  I  want  to  see." 

"  Well,  this  interview  had  better  be  ended.  If 
you  can't  find  the  door,  I  will  ring  for  some  one  to 
show  it  to  you." 

Morrissey  didn't  care  to  clean  out  a  regiment  of 
Erie  roughs,  lightly  brushing  back  the  terrified 
ft 


63 


Prince,  broadened  his  shoulders,  threw  back  his  arms 
into  position,  and  said  : 
"  Draw  that  check." 

The  role  was  decided.  Fisk  saw  it.  Morrissey 
got  his  pay.  The  bell  was  not  rung,  and  there  was 
at  least  one  account  with  Erie  which  was  squared. 

Jtttifl  $VtW  began  life  a  plain  drover  from  Carmel 
and  has  made  $30,000,000  or  $40,000,000,  mostly 
in  great  Bear  movements.  What  he  is  worth  now 
cannot  safely  be  guessed. 

"Mr.  Drew,  I  wish  to  purchase  10,000  shares  of 
Erie,"  said  a  broker  to  Daniel. 

"  Have  we  any  Eeree,  David?"  said  the  wily  bear, 
turning  to  his  Boswell. 

"  No ;  I  don't  believe  we  have  any,"  said  David, 
ponderingly.  "  I  will  see,  Mr.  Drew.  (A  pause.) 
No,  we  haven't  any  Erie,"  said  the  now  confident 
David. 

"  David  says  we  haven't  got  any  Eeree,"  whined 
the  innocent  Drew.  He  controlled  about  four  times 
the  whole  issue  at  that  moment.  Drew's  maxims 
are:  1st,  never  speculate;  2d,  never  buy  what  you 
haven't  got ;  3d,  never  know  what  is  going  on  ;  4th, 
never  have  anything  ;  5th,  never  lose  anything. 

Vanderbilt,  also,  has  some  maxims:  1st,  never 
speculate ;  2d,  never  sell  what  you  haven't  got ;  3d, 
hold  on  and  wait ;  4th,  never  tell  one  what  you  are 
going  to  do  till  you  have  done  it.  This  last  is  n« 
Hibernianism. 

Both  Drew  and  Vanderbilt  began  without  a  penny. 
Both  are  boatmen.    The  maxim  of  both  is,  never 


04 

speculate.  Both  a.c  uneducated  Both  n\c  unscru 
pulous.  Both  have  d<  nt  ted  largely  Both  have 
identifier!  themselves  with  the  material  prosperity  ol 
the  country,  and  both  are  s  iccessful  But  the  points 
of  dissimilarity  are  even  more  striking.  One  a  bear, 
the  other  a  but]  ;  one  a  bold  blasphemer,  the  other  a 
whining  sending;  one  a  Statue  of  noble  mien,  the 
other  an  arwx  andron  of  trdir  ess 

mL  &  ^CrOWf  came  fro  «.  Rochester  in  'Koo.  VVab 
CiV  .1  quiet,  hard-looking  nan.  "knowing  neither 
ruth  nor  pity,*'  on  'Change;  yel  lie  was  genial  and 
generous,  socially.  He  w.'iild  say  to  a  friend  after 
the  Board  adjourned,  and  ./hile  followed  by  his  re- 
tainers giving  him  a  blind  and  faithful  confidence, 
"  Now,  see  me  fool  the  bo  I  le  thereupon  offer 
cd  to  sell  any  part  offifteci  thousand  shai  es  of  (ialenn. 
The  brokers  around  him  thinking  this  only  a  blufl 
oiler  to  depress  the  st  >c<,  eagerly  caught  him  tip ■ 
and  in  fifteen  minutes  h<  f  old  the  whole  fifteen  thous 
and  shares  to  different  p  irtfes.  Next  morning  the 
stock  fell  (enpei  cent.,  and  he  purchased  before  night 
t  he  entire  lot ;  bagging  in  sport,  as  it  seemed,  $125,000.. 
by  the  operation.  lie  dixl  in  '864,  of  heart  disease, 
peculiar  to  Wall  Street  e.  cite  men  ts, 

JH3  18(31.  a  singular-looking  man  could  be  seen 
a'most  any  day  in  fro  it  of  one  of  the  billiard  sr 
loons  in  the  upper  part  oi  Nassau  street.  He  bore 
all  marks  of  a  bummer — stedy,  bl<  ated,  and  doomed 
to  a  grave  in  Potter's  Field.  One  year  from  that  he 
haH  made  $80,000  in  gold,  besides  other  successes, 


65 


and  now  drives  a  span  in  Central  Park  almost  every 
day,  keeps  a  hotel  and  looks  after  the  comfort  of 
guests  by  the  hundred. 


W.  ^MOttlf,  in  1873,  drove  four  bays.    He,  too, 


one  time,  within  the  past  five  years,  he  found  himself 
out  of  pocket  in  Pacific  Mail,  a  million.  The  carpers 
of  the  street  were  crying  out  "  Jerome  has  met  his 
Waterloo,"  but  in  six  months  he  picked  up  half  his 
lost  million.  The  race  course,  Jerome  Park,  bears 
his  name,  and  a  college  is  endowed  by  him  with  a 
professorship  for  teaching  its  students  the  art  ot  con- 
ducting like  gentlemen. 

He  made  over  $10,000,000  in  Wall  Street,  of  which 
$2,500,000  were  realized  in  one  "  Corner." 

fft  ^0K$(  began  to  play  "  Brag  "  on  the  green 

#pi*  sward  of  Hanover,  N.  H.,  a  mere  boy.  Fifteen 
years  afterward  he  made  his  appearance  and  had  a 
little  account  in  Wall  Street.  He  was  a  born  specu- 
tor.  He  came  to  Wall  Street  so  poor  that  he  had 
to  do  business  in  his  wife's  name  on  his  wife's  pit- 
tance. A  few  bold  operations  and  his  account  show- 
ed two  hundred  thousand  dollars.  On  Pittsburg 
alone,  a  little  later,  he  raked  in  half  a  million.  He 
was  more  like  Gould  in  his  power,  to  manage  a  hun- 
dred schemes  at  once  than  any  speculator  in  the 
Street.  He  made  about  $6,000,000  and  died  young, 
and  in  disgrace.  No  man  ever  entered  Wall  Street 
with  more  brilliant  talents,  none  knew  more  of  its  ups 
and  downs. 


Rocheste 


r,  a  born  speculator.  At 


66 


hurlou  H£tt&,  now  an  octogenarian,  has  made  a 
large  pile  of  money  in  Wall  Street.  His  intimate 
acquaintance  with  the  Government,  his  power  over 
Legislatures,  Governors,  Presidents,  Senators,  and 
Statesmen,  has  given  him  golden  opportunities 
which  few  ever  enjoyed. 

08!f$  Baylor,  though  interested  in  many  other 
lines  of  business,  invests  largely  in  Stocks.  He 
owns  a  whole  railroad,  is  President  of  the  City  Bank, 
and  a  very  hard  working  man.  He  lives  in  the  up- 
per part  of  Fifth  Avenue,  and  is  reputed  to  be  worth 
$10,000,000. 

XtVOV  &  C'ohiatf  is  an  old  bullion  house.  For 
many  years  it  bore  the  distinction  of  being  the 
only  all  bullion  house  in  New  York.  It  bears  the 
reputation  of  being  one  of  the  boldest  and  at  the 
same  time  the  most  successful  houses  in  the  Street. 
Owing  to  its  very  heavy  transactions  in  gold  we 
mention  it  here. 

flpUfltS  5tiltfh  is  one  of  the  best  known  brokers  in 
fit  the  Street.  He  began  life  in  the  west ;  was  an 
auctioneer  in  Chicago  :  organized  the  first  successful 
railway  enterprise  in  Wisconsin.  He  failed  in  Chi- 
cago, then  came  to  New  York.  He  essayed  in  1867 
to  control  the  great  Northwestern  Railroad.  It  was 
a  bold  stroke.  He  visited  Chicago  with  a  million 
and  a  half  of  proxies.  He  lost  and  was  laughed  at. 
The  Board  told  him  he  had  better  go  back  to  New 
York  and  grow.    He  said,  "  Gentlemen,  I  will  make 


67 


you  another  call.  '  This  he  did  when  he  ruled  the 
road.  What  he  did  in  Northwest  he  has  done  in 
Pacific  Mail.  He  has  ousted  Russell  Sage,  banished 
Stockwell,  and  now  is  ousted  in  turn  by  Jay  Gould. 

Sfafoj  JtyWUtotorji.— At  Saratoga,  in  1863,  three 
JUr  young  ladies  possessed  of  several  thousand  dol- 
lars made  up  a  Pool  in  Harlem.  Within  four  weeks 
they  had  made  $75,000.  Elated  with  success,  they 
visited  Stewart's  palace,  and  invested  largely  in 
Mechlin  lace,  etc.  Their  margin  was  eaten  up  as 
Harlem  fell  to  75.  But  like  true  heroes,  they  went  to- 
work  and  raised  the  money  for  more  margin,  and  in 
the  latter  part  of  April,  1864,  came  out  with  the 
Commodore  and  drew  $80,000  out  of  their  brokers' 
hands. 

Another  maiden  lady  is  never  seen  in  Wall  Street 
except  during  adverse  markets.  Then  she  buys-, 
buys,  buys.  When  the  Street  is  full  and  everybody 
is  elated,  she  stays  at  home,  and  simply  contents  her 
soul  by  ordering  her  broker  to  sell,  sell,  sell.  She  re- 
alizes more  than  $100,000  per  annum. 

Miss  M.,  another  maiden  lady,  has  operated  ten 
years,  and  made  and  lost  a  fortune  every  year.  She 
is  here  yet,  just  now  on  the  making  side. 

«'  tWC%  $\tm  came  to  the  Street  from  J.  A.  C. 
Gray's  employ,  as  a  clerk.  Before  the  panic  of 
1873  he  had  amassed  over  $8,000,000,  all  in  Wall 
Street  transactions. 

No  man  in  Wall  Street  has  had  a  brighter  pros- 
pect than  Henry  Clews.    He  is  by  birth  an  English- 


68 


man,  but  has  become  more  thoroughly  Americanized 
than  the  Bostonian  or  the  Western  railroad  King. 
He  began  by  buying  and  selling  paper,  and  dealing 
in  Privileges.  Governments  only  attracted  his  atten- 
tion, and  while  Wall  Street  operators  were  prosper- 
ing on  the  misfortunes  of  the  Government  and 
people,  Mr.  Clews  allied  himself  with  the  true  inter- 
ests of  his  adopted  country.  The  late  Chief-Justice 
Chase  has  said  that  to  Mr.  Clews  more  than  to  any 
other  man  we  are  indebted  for  the  money  to  carry  on 
the  war  to  a  successful  conclusion.  The  natural 
result  of  success  is  confidence.  Not  even  capital  can 
outvie  success.  It  is  the  absolute  divinity  of  Wall 
Street.  Success  gave  Mr.  Clews  a  prestige  scarcely 
ever  enjoyed  before  in  Wall  Street,  except,  perhaps, 
by  Jay  Cooke.  In  the  brief  occupation  of  Mr.  Henry 
Clews'  star  in  the  storm  which  is  yet  sweeping  the 
sky,  man)'  appear  to  think  that  star  is  set.  No  one 
who  knows  Mr.  Clews  intimately  will  say  this. 
There  are  those  who  believe  Mr.  Clews  will  com- 
pletely eclipse  his  past  record. 

<£.  ^Klti'h  is  a  clear-headed  banker.  He  com- 
*  menced  his  buisness  career  as  cashier  of  a  Jersey 
City  bank.  His  introduction  to  Mr.  Chase  during 
the  war  resulted  in  the  firm  of  Fisk  &  Hatch,  large 
dealers  in  governments.  The  negotiation  of  the  Cen- 
tral Pacific  R.  R.  bonds  was  the  triumph  of  Mr. 
Hatch's  brain,  and  later  the  Chesapeake  and  Ohio's. 
The  moment  the  panic  storm  began,  Mr.  Hatch  saw 
the  necessity  of  suspension,  and  his  foresight  has  re- 


69 


dounded  to  the  benefit  of  his  creditors.  Unlike  Mr. 
Clews,  he  saved  all  to  carry  him  along. 

m  UxMtV  latltOr  commenced  as  a  banker  and! 
$\  broker  at  the  corner  of  Pearl  and  Wall  streets  in 
the  year  1840.  He  has  pursued  a  uniform  plan  of 
!f  doing  business,  and  after  an  honorable  and  prosper- 
{  ous  career,  has  retired,  establishing  his  two  younger 
brothers  on  a  solid  basis,  known  as  Taylor  Brothers, 
17  Wall  street.  His  two  sons,  Alexander  and 
George,  have  inherited  the  sterling  qualities  of 
their  father,  and  do  a  safe  business  in  banking  and 
brokerage,  under  the  firm  of  Alexander  Taylor's 
Sons,  No.  56  Broadway. 

tttj  (ftOUltl. — But,  perhaps,  few  men  can  excel  in 
continuous  success  Jay  Gould.  He  was  but 
yesterday,  as  it  were,  a  poor,  short  of  stature  boy,  tip- 
toeing to  see  over  the  Delhi  hills  into  the  broad  valley 
which  determines  at  this  island.  He  came  over  the 
mountains  of  Delaware  county,  and  appears  first  as  an 
associate  of  the  "oiled  and  curled  Assyrian  Bull."  He 
is  a  very  different  man  from  what  Fisk  was.  Here 
he  is  now  as  sleek  as  a-tailor,  as  calm  and  silent  as 
Keep,  as  vast  and  as  versatile  in  his  management  of 
men  and  schemes  as  Napoleon.  He  walks  quietly 
into  the  Street  at  eleven  and  retires  at  ten  minutes  to 
three,  and  this  only  in  days  that  are  Waterloo  defeats 
to  his  foes.  His  ubiquity  of  manifestation  is  absolute- 
ly without  parallel  in  the  Street  history.  Vanderbilt 
may  be  richer,  but  it  must  be  remembered  that  the 
Commodore  was  rich  when  he  came  here.  Gould 
was  even  poorer  than  Fisk,  and  we  have  no  record 
that  Gould  had  much  personally  to  do  in  the  Street 
affairs  till  Risk's  death.  His  eye  is  restless;  his 
tongue  is  silent ;  but  his  brain  is  very  busy.  His 
manipulations  of  stocks  have  been  as  wonderful  as 


ver, 


70 


his  career  in  Erie.  He  always  appears  greatest 
when  about  to  be  defeated.  Hurled  headlong  by 
Dix,  Barlow  and  the  English  stockholders,  and  given 
the  alternative — pay  $5,000,000  embezzled  funds  back 
to  Erie  or,  Sing  Sing.  He  pays  the  $5,000,000  and 
goes  long  on  Erie  and  makes  $6,000,000  by  the  rise  con- 
sequent upon  bulling  the  stock  of  the  road  he  re- 
lieves of  his  odious  presence.  Mr.  Gould  is  probably 
at  this  time  at  the  bottom  of  a  scheme,  which,  if 
persisted  in,  will  place  the  great  majority  of  railroads  I 
in  the  country  under  his  control. 

It  is  not  too  extravagant  to  suggest  that  nothing 
but  the  death  of  the  Commodore — a  thing  in  nature 
not  very  far  in  the  future — and  the  failure  of  Tom 
Scott  to  keep  his  feet  much  longer  in  this  storm,  is 
necessary,  and,  perhaps,  not  even  these,  to  give  Mr. 
Gould  practically  a  free  course  over  the  main  trunk 
lines  from  Atlantic  to  Pacific,  north  of  the  Baltimore 
and  Ohio.  Certainly  Mr.  Gould  is  restrained  by  no 
*'  pent  up  Utica."  The  continent  is  his  until  a 
power — legislative  or  popular — shall  limit  his  ambi- 
tion. 

fijipUSSfU  #8fl*  is  a  development  ot  the  Panic.  All 
]C?"\  through  the  terrible  months  from  September, 
1873,  he  carried  a  bank  full  of  greenback and  made 
money  like  a  Prince.  He  is  supposed  now  to  be  lay- 
ing very  low  for  Pacific  Mail,  but  you  "  can't  most 
always  sometimes  generally  tell "  how  that  thing  is 
in  W  all  street.  Twelve  years  ago  he  began  an  hum- 
ble plodder,  to  interest  people  in  the  West  in  a  route 
from  Milwaukee  to  St.  Paul.  The  result  was  the 
building  of  the  Milwaukee  and  St.  Paul,  of  which 
Mr.  Sage  now  owns  $3,000,000  properties.  He  is 
immensely  rich — worth,  probably,  ten  to  fifteen  mill- 
ions, and  in  case  of  a  panic,  could  in  one  hour  handle 
$5,000,000  greenbacks.    This  was  tested  in  the  Jay 


71 


Cooke  panic,  when  Mr.  Sage's  shrewdness  shone 
out  with  such  brilliancy  as  to  cause  him  to  come  to 
the  very  front  among  financiers. 

fillf  (Soalt,  whose  fail  ure  precipitated  the  panic 
of  1873,  was  looked  upon  a  few  years  ago  as  the 
chief  corner-stone  of  Wall  Street.  His  views  on 
questions  of  finance  became  an  authority  in  the  land. 
He  has  done  good  service  to  the  Government,  but 
his  name  is  associated  with  the  ruin  of  many  poor 
families  who  relied  upon  his  ability  to  carry  out  his 
Northern  Pacific  scheme. 

aiU£$  Jp$h ! — Who  does  not  remember  James 
Fisk.  First  as  the  Prince  of  Peddlers.  Next  as 
Prince  of  Merchants.  Then  as  Prince  Erie ;  be- 
ginning life  in  Wall  Street  by  haunting  Daniel  Drew's 
Den. 

James  Fisk,  Jr., came  into  Wall  St.  enjoying  the  con- 
tempt of  Drew  for  his  penniless  condition.  But  the 
old  man  always  had  a  fancy  for  Jim  ;  for,  after  hint- 
ing that  his  room  would  be  more  acceptable  to  the 
patriarch  than  his  company,  Fisk  got  a  den  of  his 
own,  which  so  fascinated  the  old  bear  that  he  spent 
the  most  of  his  time  in  it  much  more  than  was  for 
his  spiritual  and  financial  welfare,  as  will  readily  be 
understood  by  reference  to  Erie  wars.  Fisk  owned 
Erie,  the  Opera  House,  the  great  Bristol  line  of 
steamers,  and  sundry  other  things,  and  was  a  famous 
millionaire,  all  gained  in  Wall  street. 

We  invite  correspondence  on  all  matters  touching 
railroad  stocks  and  bonds,  and  shall  at  all  times  be 
pleased  to  give  suggestions,  how,  when,  and  in  what 
to  make  operations  in  Wall  Street. 
Address  all  communications 

JOHN  HICKLING  &  CO., 

72  Broadway.  New  York. 


CONTENTS. 


Part  first. 

MM 


Wall  Street  a  Financial  Centre   3 

The  New  York  Stock  Exchange   3 

The  Brokers   4 

Noted  Men  iu  Wall  Street   4 

Cliques  and  Pools   ..  I 

Speculation   6 

Modus  Operandi   7 

Marginal  Method   8 

Cash.  Uegn'ar and  Option  Sales   11 

Under  the  Kule   12 

Tight  Money  Market   13 

Long  of  Stocks   14 

Short  of  8tocks   14 

A  Corner   14 

Covering  a  Short  Sale   15 

Commission   16 

A  lireak    16 

The  "Milking'"  Process   17 

"Sold  Out"   17 

A  Call  Loan   18 

To  Make  a  Turn   18 

A  Lame  Duck   18 

A  Wash  Sale   19 

A  Get  Out   19 

Investments   19 

Salting  Down   22 

Dealing  in  Bonds   23 

Complete  List  of  Defaulted  U.K.  Bonds  26 

Notes   30 

Part  Second. 
Putt,  Calls,  Spreads,  and  Straddles.  31 

1st.  A  Pat   31 

2d.  A  Call   31 

3d.  A  Spread   32 

4th  A  Straddle   33 

The  Improved  System   34 


Price  of  Th.rty  Day  Stock  Privileges  35 


PAGE. 


A  Put  Contract   35 

A  Call  Contract   36 

A  Spread  Contract   87 

A  Straddle  Contract   40 

Who  Pays  the  Profits  on  Privileges. .  4© 
Buying  and  Selling  Stocks  Again  t 

Privileges   42 

Oold  Privileges   46 

Instructions  for  Ordering  Privileges  46 
List  of  Stocks  Dealt  in  at  the  N.  T. 

Stock  Exchange   48 

Kailroad  Statistics   49 

Highest  and  Lowest  Prices  of  Stocks 

for  Fifteen  Years   60 

Black  Friday,  or  Oold  Conspiracy  of 

Sept.  24, 1869   52 

Reminiscences  of  Wall  Street   66 

South  ea  Bubble    59 

RtPBESENTATIVE  MEN  Of  WaLL,  ST.  .  .  60 

Commodore  Vanderbtlt   60 

Henry  Keep   61 

Morrissey  and  Prince  Erie   62 

Danlc!  Drew   63 

A.  G.  Jerome   64 

L.  W.  Jerome   65 

A.  W.  Morse   65 

Thurlow  Weed   66 

Moses  Taylor   66 

Trevor  &  Colgate   66 

Rufus  Batch   66 

Lady  Speculat  re    67 

Henry  Clews   67 

A.  S.  Hatch   68 

Alexander  1  aylor   69 

Jay  Gould   69 

Rust  ell  Sage   70 

Jay  Cooke,  71 

JamtB  Fisk   71 


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